PeopleSoft Contracts for Government Contracting 9.1 PeopleBook

Creating Cost-Plus Government Contract Lines

This chapter provides overviews of creating cost-plus contract lines, lists prerequisites and common elements, and discusses how to:

Define fee calculations.
Define cost-plus contract header data.
Define cost-plus contract lines.
Add products to contracts with cost-plus functionality.
Create ad hoc products for cost-plus contract lines.
Price cost-plus contract lines.
Define cost-plus contract fees.
Run the Pricing Engine for cost-plus contract lines.
Set up revenue plans for cost-plus contract lines.
Process cost-plus contract line revenue.
Set up billing plans for cost-plus contract lines.
Process billing for cost-plus contract lines.
Review revenue and billing fees.
Create amendments.

Understanding Creating Cost-Plus Government Contract Lines

This section discusses:

Creating cost-plus government contracts.
Cost-plus contract line accounting distribution.
Project and activity assignments for cost-plus contract lines.

Government contracts are awarded based on bids submitted to the government that contain a company's estimated costs and rates for performing the contract. Once awarded, contractors must be able to effectively manage their costs and fees so that they stay within the terms and conditions outlined in the contract. This helps ensure that the contractor is appropriately reimbursed for their costs, and any fees that they receive represent a sufficient profit for their services.

To ensure that they receive proper payment for their services, government contractors track, calculate, and report on direct costs, indirect costs, and fees. To accommodate this requirement, PeopleSoft Contracts enables you to define government contracts and associate rate-based contract lines with fee types (cost-plus). After the contract lines are added to the contract, you can define additional terms and conditions, set up accounting distributions, define limits, fee calculation data, projects, activities, and standard or contract-specific rate plans for the contract lines to enable you to bill and recognize revenue for your direct costs, indirect costs, and fees according to the terms and conditions of the contract.

Creating Cost-Plus Government Contracts

To define a contract with cost-plus functionality, complete the following steps:

Determine if you are calculating billing and revenue for your cost-plus contract lines using different rates.

If so, select the Separate Billing and Revenue option on the Installation Options-Contracts page.
Define a new contract with a contract classification of Government.

A contract must be assigned a contract classification of Government to have access to the government contracts and cost-plus functionality.
Add rate-based contract lines to the contract that are assigned a fee type of Fixed, Award, Incentive or Other.

Cost-plus contract lines are represented as rate-based contract lines assigned a fee type. After you assign a fee type to the contract line, the system automatically generates the pages and fields specific to that fee type used in processing direct and indirect costs and fees.
Enter the awarded, funded, and revenue contract line amounts for billing and revenue, as well as billing and revenue fee amounts.

Enter these amounts on the Contract Amounts page for each contract lines. These amounts represent limits for billing and revenue and are also used in fee calculations by the fee worksheets for each contract line. You can also enter the period of performance dates to control limits and bill processing on this page.
Assign projects and activities to the contract lines.

PeopleSoft Contracts uses the projects and activities in PeopleSoft Project Costing to track and calculate costs associated with the contract lines and to calculate fees. You must assign at least one project and activity set to the contract line.
Define and assign a rate plan to the contract line.

Rate plans consist of a grouping of rate sets used to price transactions that occur against the contract line. Cost-plus contract lines require that you calculate direct and indirect costs. To manage this complex pricing scenario, you must define costing, billing, and optionally revenue rate sets and then group them together onto one rate plan.

As only one rate set or rate plan can be assigned to a contract line at any one point in time, you must assign rate plans to cost-plus contract lines to enable you to calculate the project transaction costs and then bill and recognize revenue for those expenses. You can define a standard set of rates and assign them to your contract lines, or you can define rates that are specific to the contract that you are creating.
Define revenue and billing plans and assign them to the contact lines.

To bill and recognize revenue for your cost-plus contract lines and associated fees, you must define billing and revenue plans using the as-incurred revenue method and assign them to your contract lines. Cost-plus contact lines must be assigned to their own unique billing and revenue plans and must use the as-incurred billing and revenue method.

You can set up and assign billing and revenue plans for your cost-plus contract lines manually, or automatically using billing/revenue plan templates. No matter which method that you use, when the billing and revenue plans are assigned to the contract lines, the system automatically creates a billing and revenue worksheet that is specific to the fee type.

Note. If you do not select the option to Separate Billing and Revenue on the Installation Options-Contracts page, the system will not generate a revenue worksheet, and all fields related to defining separate revenue amounts and fee data is hidden. However, you still must define a revenue plan to process revenue accounting entries for the contract line.

After you have completed all of your contract specific setup, you can begin processing transactions against the contract lines and generate invoices and revenue accounting entries for your contract lines and fees.

Cost-Plus Contract Line Accounting Distribution

PeopleSoft Contracts enables you to capture billing and revenue information for a contract and allocate that information to individual contract lines. You associate each contract line with billing and revenue accounting distributions, billing and revenue plans and methods, manage when the conditions for billing and recognizing revenue have been met, and generate invoices and journal entries to book the revenue to the general ledger. Before you can perform bill and revenue processing for your government contract lines, you must first set up the required accounting distributions.

For rate-based contract lines and rate-based contract lines associated with fee types, you must define accounting rules. Accounting rules are set up using the Project Costing Accounting Rules pages and are defined by PeopleSoft Contracts and PeopleSoft Project Costing business units and analysis type. Depending on whether you will be using different rates for your billing and revenue calculations for your contract lines, and have selected the Separate Billing and Revenue option on the Installation Options-Contracts page dictates the amount of accounting rules setup needed.

For billing purposes, the Contracts/Billing Interface (CA_BI_INTFC) process retrieves the unbilled accounts receivable ChartField values from the billing accounting rules. When the As-Incurred revenue process is run in PeopleSoft Contracts, it looks to the accounting rules defined to retrieve the appropriate revenue accounting distribution ChartFields for the eligible contract lines and fees.

The system processes all undistributed billing and revenue rows stored in the PROJ_RESOURCE table in PeopleSoft Project Costing and generates the billing and revenue accounting entries that can be billed and booked to the general ledger. To ensure that the system generates accounting entries for all of your eligible contact lines and fees, you must define an accounting rule for each analysis type associated with the PSWKS, PSREV and PSRV2 analysis groups.

Note. If you have elected to use separate rates for billing and revenue calculations and have selected the Separate Billing and Revenue option on the Installation Options-Contracts page, then you must also set up accounting rules using the REV (revenue) analysis type. This analysis type is associated with the PSRV2 analysis group and is used to generate the revenue accounting entries for your cost-plus contract lines and fees when the As-Incurred Revenue process is run.

See Setting Up Accounting for Projects.

See Also

Rate-based Contract Lines

Project and Activity Assignments for Cost-Plus Contract Lines

PeopleSoft Contracts partners with PeopleSoft Project Costing to enable you to bill and recognize revenue for projects and activities associated with a contract. To enable you to properly price and track transactions associated with your projects and activities, you must associate the pricing rates, projects, and activities with your contract lines. For rate-based contract lines, you must assign at least one project and activity to your contract line. In addition, for cost-plus contract lines, you must indicate which project and activity set should be stamped on the fee rows generated for the contract line. At least one project and activity set must be selected for stamping on the fee row at any one point in time; however, you can change which project and activity set is used throughout the life of the contract line, outside of amendment processing.

See Pricing Cost-Plus Contract Lines.

See Assigning Projects and Activities to a Contract Line.

See Also

Working with PeopleSoft Project Costing

Prerequisites

Before you can set up a government contract with rate-based contract lines associated with fee types (cost-plus), you must complete the following steps:

Set up analysis types and analysis groups for processing forward pricing and provisional pricing rates.

You also must define the analysis types that you want stamped on the fee rows generated by the system.
Define the fee types used in your contracts at the PeopleSoft Contracts business unit level.

PeopleSoft Contracts supports the fee types of Award, Fixed, Incentive, and Other. Each of these fee types must be defined before you can assign them to your cost-plus contract lines and utilize the cost-plus functionality.
Select the Separate Billing and Revenue option on the Installation Options-Contracts page (optional).

If you bill and recognize revenue using separate rates for your cost-plus contract lines, then you must select this option to activate the revenue worksheet and fee features. If you bill and recognize revenue using the same rates, then you do not have to select this option.
Define rate sets and rate plans.

Rate plans must be assigned to your cost-plus contract lines to perform pricing for direct and indirect costs.
Define accounting rules used to assign billing and revenue accounting distributions to your contact lines and fees.

You must define accounting rules for each analysis type in the PSWKS, and PSREV analysis groups. If you select the Separate Billing and Revenue option on the Installation Options-Contracts page, then you must also define accounting rules for each analysis type in the PSRV2 analysis group.
Create a contract with a contract classification of Government.
Add rate-based products to the contract that are assigned a fee type of Fixed, Award, Incentive or Other.

After you have added your contract lines associated with fee types, you must complete the fee-specific fields and remaining contract line attributes, such as assigning projects and activities, and so on, that are required to enable you to bill and recognize revenue for your contract lines and fees.

Common Elements Used in This Chapter

Acct Date or Accounting Date	Enter the accounting date to indicate when the event is eligible for booking to the general ledger.
Accounting Date (Processing Options)	Select the accounting date to be stamped on the billing or revenue fee row when it is created by the system. This date populates the accounting date field for the fee transaction row in the Project Costing Project Transaction table. You can select from the following options: Processing Date: Select to use the system date that the process is run for the accounting date. User Define: Select to enter a specific date that the system uses as the accounting date when the process is run.
Add Milestone	Click to access the Milestone Entry page, where you can define a new milestone to add to a revenue plan fee event for your award and incentive revenue fees.
All Billable Costs	Displays the total of all cost rows assigned a billing (BIL) analysis type from the contract line's inception to the current date. This total comes from the eligible billing cost rows summed from the Project Costing Project Transactions tables that meet the following criteria: The analysis type for the cost is contained in the BIL analysis group defined in the fee type definition. The resource type for the cost is not excluded in the fee type definition. No fees have been generated against it, and the CA_FEE_STATUS is blank The transaction date for the costs is within the period of performance specified on the fee worksheet. Note. Period of Performance dates are only enforced when the Control Limits and Billing check box is selected.
Amount (Events)	Displays the proposed award, additional award or incentive amount from the revenue fee worksheet. This amount is validated against the revenue fee limit and cannot be overridden on the event row. To change the proposed amount you must navigate to the revenue fee worksheet. Anytime that a proposed amount is modified, the system validates the amount against the revenue fee limit once the amount is entered and saved.
Costs Used in Fee Calculation (Project Costing-Billing)	Displays the total of all billable cost rows from the contract line's inception to the current date with a fee status of one (1). The minimum valid value for this field is zero, and the maximum valid value for this field is the total of all billable costs rows from the contract line's inception to the current date. This total comes from the billing cost rows stored in the Project Costing Project Transactions tables.
Current Period Billable Costs	Displays the total of all billable costs rows with a blank fee status value. A blank fee status indicates that the billable costs row has not been used for fee calculations. This total comes from the billing cost rows stored in the Project Costing Project Transactions tables.
Days Lag	For Milestone event types, you can specify a positive number in this field. The days lag is the number of days after the milestone has completed that the system waits before processing the event.
Event	Displays the event sequence number. The award fee schedule enables you to enter additional event rows to process your revenue fees. The incentive fee schedule allows only one event fee row to be entered on the schedule.
Event Type	Select the event type of milestone or date. Use an event type of Date to trigger revenue recognition for your award or incentive fees based on the accounting date specified for the event. Use an event type of Milestone to trigger revenue recognition for your award or incentive fees based on the completion of a PeopleSoft Contracts or PeopleSoft Project Costing milestone.
Event Status (Award or incentive fee event schedule)	Select the status of the event. The event status controls the timing of when the event can be processed. Select from the following statuses: Pending: Appears by default when you open the Revenue Plan award or incentive fee event schedule page. You can enter a fee event row in pending status and edit the fee event data. Ready: Set the fee event row to Ready status when you are ready to process the adjustment. When you run the As-Incurred Revenue (PSA_ACCTGGL) process to generate the event row, the system checks the amount against the award or incentive fee limit. Only one event row can be set to Ready status at any one time. Fee event rows in Ready status cannot be edited. You must first reset the status to pending to make any changes to the row. Completed: Set by the system when you run the As-Incurred revenue process. The system processes the revenue fee and sets the event row to a status of Completed. Award and incentive fee event rows in Completed status can no longer be edited.
Event Note	Click the link to enter a free-form note regarding the fee event.
Funded Cost Limit	Displays the funded limit amount entered on the Contract Amounts page for the contract line. The minimum valid value for this field is the inception to date actual costs that have had billing rows created. The maximum valid value for this field is the billing cost limit entered on the Contract Amounts page.
Funded Fee Limit	Displays the funded fee limit amount entered on the Contract Amounts page for the contract line. The minimum valid value for this field is the inception to date fee amount that has been billed. The maximum valid value is the limit for the funded fee limit amount that is entered on the Contract Amounts page.
Override	Select to override the amounts entered in the revenue fee limit, fee percent, and proposed fee fields. Any overrides that you enter only apply to the one fee row that is created and is subject to fee limit processing. Once the fee is generated, the system resets the override option to Proposed and resets any changed values back to their previous values. Note. If no fee is to be recognized for the contract line, then you must manually enter zero in the proposed fee field and select the Override option. Otherwise, the system processes the fee amount proposed by the system.
Milestone Origin	Select from the following values: Contracts: Associates the revenue recognition fee event to a milestone that was defined in PeopleSoft Contracts. Projects: Associates the revenue recognition fee event to a milestone that was defined in PeopleSoft Project Costing.
Milestone Nbr (Milestone Number)	If you have a Milestone event type with an origin of Contracts, select a milestone number from the drop-down list box of all milestones that you have defined for this contract.
Milestone Status	Displays the status of the selected milestone. Values are: Pending, Ready, Completed, and Cancelled.
Process Automatically	Select to automatically verify that the proposed fee amount is within the specified limit parameters, accept the system proposed fee amount, and process the proposed fee amount to PeopleSoft Billing and PeopleSoft General Ledger for your billing and revenue fees.
Project Info	If you have a Milestone event type with an origin of Projects, click to select the project and activity and activity status containing the milestone to which you want to link this revenue event.
Proposed	Select to accept the proposed fee amount calculated by the system. This option is selected by default for the revenue fee worksheet.
Submit for Processing	Click the button to run the fee limit processor and generate a billing or revenue fee row. The fee limit processor evaluates the proposed fee and determines if the fee amount is within the billing and revenue fee limits defined for the contract line. The fee limit processor can also be initiated when the fee worksheet is saved.
Total Contract Line	Displays the total of the funded cost and funded fee limit amount for the contract line.

Defining Fee Calculations

To enable the PeopleSoft Contracts system to calculate fees for your cost-plus contract lines, you must first complete the system setup for the fees that are used in your contracts, and then enter the relevant fee calculation data used by the fee worksheets to calculate the proposed fee amounts for each contract line.

To set up your system to enable fee processing, complete the following tasks:

Set up the fee definitions for all fee types used in your contracts at the PeopleSoft Contracts business unit level.

Note. If a fee definition is not set up for a specific fee type, that fee type cannot be associated with a contract line, added to a contract, and saved. Edit checks exist on the contract to prevent this situation from occurring.
Set up the fee analysis groups and types used by the fee worksheets to calculate the proposed billing and revenue fee amounts.

After you have set up the fee requirements for your system, you must enter the relevant fee data for your cost-plus contract lines on the individual contracts to enable the system to calculate fees. All contract line cost data is stored in the Project Costing Project Transaction tables.

To set up your contract lines to enable fee processing, complete the following tasks:

Complete the Contract Amounts page.

Cost-plus contract lines are associated with a Contact Amounts page that enables you to define the funded, revenue and fee limit amounts that are used in the billing and revenue fee calculations. You can also enter period of performance date ranges on this page for cost and fee limit processing.
Assign at least one project and activity to the contract line.

Projects and activities must be assigned to the cost-plus contract lines to indicate which costs should be included in the inception to date cost calculations for fees. You also must select which project and activity set should be stamped on the generated billing and revenue fee rows.
Assign an active rate plan to the contract line.

Contract–specific or standard rate plans must be assigned to the cost-plus contract lines to enable the system to generate costs, indirect costs, billing and revenue rows used in the calculation of fee rows.

If your contract lines do not require complex pricing, a single contract-specific or standard rate set can be used.

See Defining Cost-Plus Contract Fees, Defining Fee Worksheet Analysis Types, Defining Cost-Plus Contract Lines, Pricing Cost-Plus Contract Lines.

Defining Cost-Plus Contract Header Data

This section provides an overview of defining contract header data for contracts containing cost-plus contract lines and discusses how to define contract headers for contracts containing cost-plus contract lines.

Understanding Defining Contract Header Data for Contracts Containing Cost-Plus Contract Lines

The contact header enables you to define the customer data, as well as the overall terms and conditions for the contract, such as billing options, payment terms, contract start date, and relationship, if any, to other contracts. To apply the cost-plus functionality for a contract, you must define the contract, assign a contract classification of Government, and assign at least one rate-based contract line to the contract that is associated with a fee type other than None.

Page Used to Define Contract Headers for Contracts Containing Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Contracts – General	CA_HDR_PNL	Customer Contracts, Create and Amend, General Information, General	Set up and manage contract header information.

Defining Contract Headers for Contracts Containing Cost-Plus Contract Lines

See Defining General Contract Information.

Defining Cost-Plus Contract Lines

This section provides an overview of defining cost-plus contract lines, lists common elements and discusses how to:

Define cost-plus contract line terms and amounts for fixed fees.
Define cost-plus contract line terms and amounts for award fees.
Define cost-plus contract line terms and amounts for incentive fees.
Define cost-plus contract line terms and amounts for other fees.

Understanding Defining Cost-Plus Contract Lines

Cost-plus contract lines are rate-based contract lines associated with a fee type. To track, calculate, and report on fees associated with a government contract, you must define a contract with a contract classification of Government and add rate-based contract lines to it that have been assigned a fee type of Fixed, Award, Incentive or Other. A government contract can contain any combination of rate-based contract lines associated with various fee types, but only one fee type can be assigned to a rate-based contract line. After you add the contract lines to the contract and save the contract, the system can create fee-specific pages to process and manage cost-plus attributes, such as funded amount, revenue and fee limits, period of performance billing controls, fee worksheets, and so on.

After a fee type is assigned to a rate-based contract line, and that contract line is added to the contract and saved, the system generates a fee-specific Contract Amounts page, and Billing and Revenue Fee Worksheet pages, that once complete, enables the system to calculate fees. The data entered on the Contract Amounts page enables the system to calculate the funded and revenue fee amounts as well as capture base fee calculation data used by the billing and revenue fee worksheets. Because the attributes used for cost-plus contract processing are controlled at the contract line level, if a contract line is added with an incorrect fee type, you must delete that contract line and unassign any billing and revenue plans associated with it. You can then add a new contract line assigned to the correct fee type.

See Defining Contract Lines.

Common Elements Used in This Section

Awarded Cost	Enter the awarded amount for the contract line. This amount is used as a control amount and cannot be exceeded by the entered funded amount.
Awarded Fee	Enter the awarded fee amount for the contract line. This amount is used as a control amount and cannot be exceeded by the entered funded fee amount.
Awarded Total	Displays the calculated total of the awarded costs and awarded fee amounts for the contract line.
Funded Cost	Enter the funded costs amount for the contract line. This amount is used for limit processing for transactions occurring against this contract line. The amount that you enter here cannot exceed the awarded amount.
Funded Fee	Enter the funded fee amount for this contract line. Government contracts generally contain limits on the amount of fees that can be billed. The amount entered here is used to limit the amount of fees that can be billed for this contract line. For fixed, award, and incentive fees, this field is populated by the system based on calculations using the funded cost amount; however, the value can be overridden. For a fee type of Other, you must enter the funded fee amount.
Funded Total	Displays the calculated total of funded cost and funded fee amounts for the contract line.
Revenue Cost	Enter the revenue costs for the contract line. This field will only appears for contract lines associated with a fee type (cost-plus) and you must have selected the Separate Billing and Revenue option on the Install Options-Contracts page. Enter a revenue cost amount when you need to set a separate revenue recognition limit amount for this contract line.
Revenue Fee Worksheet	Click to access the revenue fee worksheet. This link will only appears for contract lines associated with a fee type (cost-plus) and you must have selected the Separate Billing and Revenue option on the Install Options-Contracts page.
Transaction Limits	Click to access the Transaction Limits page and enter transaction limit criteria and amounts for this contract line. See Setting Up Transaction Limits.
Review Limits	Click to access the Review Limits component. The Review Limits component enables you to review overall limit amounts, amounts remaining, and any amounts in excess for the contract line. For excess limit amounts, you can also view the details of the last processed transaction. See Pages Used to Review Limit Processing.
Perform Limit Checking	Click this button to perform limit checking for this contract line on an ad hoc basis. Clicking this button will launch the Limits (CA_LIMIT) process and run limit checking for the contract line's billing and revenue limit amounts if changes were made using amendment processing.
Start Date	Enter the start date for the contract line. Government Contracts enables you to control billing and limit processing within a specified date range per contract line. After the contract is set to an active processing status, this date is no longer editable if the Control Limits and Billing option is selected.
End Date	Enter the end date for the contracts line. After the contract is set to an active processing status, this date can be changed throughout the life of the contract, using amendment processing, but cannot be set to a date prior to the entered start date.
Control Limits and Billing	Select the check box to control billing and limit processing for rate-based and rate-based contract lines associated with a fee type (cost-plus). When this option is selected, the Contracts/Billing Interface (CA_BI_INTFC) process and the Limits (CA_LIMIT) process will only select transactions for processing if the transaction date falls within the period of performance date. All other transactions are not processed. Note. If you have not selected the option to separate billing and revenue on the Installation Options-Contracts page, the period of performance settings also apply to revenue, as the billing transaction rows (BIL) are used for both billing and revenue recognition purposes. See Setting Up Contract Amounts.

Page Used to Define Cost-Plus Contract Line Terms and Amounts

Page Name	Definition Name	Navigation	Usage
Contract Amounts	CA_AMT_TERMS	Customer Contracts, Determine Price and Terms, Contract Terms, Contract Amounts Click the Contract Terms link on the Detail tab of the Contract – Lines page.	Define contract terms and conditions and set up limit processing parameters for rate-based contract lines associated with fee types of Fixed, Award, Incentive and Other.

Defining Cost-Plus Contract Line Terms and Amounts for Fixed Fees

Access the Contract Amounts page for fixed fees (Customer Contracts, Determine Price and Terms, Contract Terms, Contract Amounts).

Fixed Fee

Billing Fixed Fee Percent

Enter the fixed fee percent amount for the contract line. The fixed fee percent is multiplied by the total funded costs to determine the total funded fee amount. The fixed fee amount represent the profit earned on top of total costs for performing the service or creating the product defined on the contract, but is subject to a limit.

Revenue Fee Worksheet

Click to access the revenue fee worksheet and define, calculate and manage fixed fee percentages, limit amounts and fee amounts for revenue. This link only appears if you have selected the Separate Billing and Revenue check box on the Installation Options-Contracts page, and after the revenue plan is defined for the contract line.

See Defining Fixed Fee Revenue Fee Worksheets.

Defining Cost-Plus Contract Line Terms and Amounts for Award Fees

Access the Contract Amounts page for award fees.

Award Fee

Billing Base Fee Percent

Enter the billing base fee percent amount for the contract line. The billing base fee percent is multiplied by the total funded costs to determine the total funded fee amount. The billing base fee amount represent the agreed upon profit percentage earned on top of total costs for performing the service or creating the product defined on the contract, but is subject to a limit.

Note. If no base fee percentage is provided by the government, you can enter zero in this field, and the system will not calculate a base fee amount.

Additional Award

Enter the additional award amount or percent available for work completed for this contract line. If you select the Percent option, and enter a percentage, the system multiplies the percentage by the funded cost amount and displays the result in the corresponding field. You can manually override the calculated amount if needed, or select the Amount option and enter the amount in the corresponding field.

Revenue Fee Worksheet

Click to access the revenue fee worksheet and define, calculate, and manage award fee percentages, limit amounts and fee amounts for revenue. This link only appears if you have selected the Separate Billing and Revenue check box on the Installation Options-Contracts page, and after the revenue plan is defined for the contract line.

See Defining Award Fee Revenue Fee Worksheets.

Defining Cost-Plus Contract Line Terms and Amounts for Incentive Fees

Access the Contract Amounts page for incentive fees.

Incentive Fee

Incentive fee calculations are based on the funded and revenue limit amounts that you enter on this page. If you leave these fields blank, then the system cannot properly calculate the fee amounts for billing and revenue. Revenue fee limit amounts are only required if you have selected the Separate Billing and Revenue option on the Installation Options-Contracts page.

Cost Share Percent: Underrun	Enter the cost share underrun percentage that the system uses to adjust the target fee percentage that can be billed. Fee calculations are based on the funded cost amount.
Cost Share Percent: Overrun	Enter the cost share overrun percentage that the system uses to adjust the target fee percentage that can be billed. Fee calculations are based on the funded cost amount.
Fee Percent: Target	Enter the target fee percent that the system uses to calculate the target fee amount. Fee calculations are based on the funded cost amount.
Fee Percent: Minimum	Enter the minimum billable fee percentage for the contract line. Fee calculations are based on the funded cost amount.
Fee Percent: Maximum	Enter the maximum billable fee percentage for the contract line. This fee percent is used to calculate the funded fee limit amount by multiplying the maximum fee percent by the funded cost amount.
Fee Amount: Target	Displays the calculated result of the target fee percentage multiplied by the funded cost amount.
Fee Amount: Minimum	Displays the calculated result of the minimum fee percentage multiplied by the funded cost amount.
Fee Amount: Maximum	Displays the calculated result of the maximum fee percentage multiplied by the funded cost amount.
Revenue Fee Worksheet	Click to access the revenue fee worksheet and define, calculate, and manage incentive fee percentages, limit amounts, and fee amounts for revenue. This link only appears if you have selected the Separate Billing and Revenue check box on the Installation Options-Contracts page, and after the revenue plan is defined for the contract line. See Defining Incentive Fee Revenue Fee Worksheets.

Defining Cost-Plus Contract Line Terms and Amounts for Other Fees

Access the Contract Amounts page for other fees.

Other Fee

The fee type of Other is used to track and calculate fees that have no specific attributes. Using this fee type, you can enter a user-defined fee amount that is billed by the system each time that you run the fee process.

Note. You can also use this fee type to enable cost-plus functionality for your contract lines, but not generate fees by assigning the fee type of Other to the contract line and entering a fee billing amount of zero.

Other Fee Billing Amount

Enter the other billing fee amount for the contract line.

Revenue Fee Worksheet

Click to access the revenue fee worksheet and define, calculate, and manage fee limit amounts and fee amounts for revenue. This link only appears if you have selected the Separate Billing and Revenue check box on the Installation Options-Contracts page, and after the revenue plan is defined for the contract line.

See Defining Other Fee Revenue Fee Worksheets.

Adding Products to Contracts with Cost-Plus Functionality

This section provides an overview of adding products with cost-plus functionality and discusses how to add products with cost-plus functionality to a government contract.

Understanding Adding Products with Cost-Plus Functionality

To enable the cost-plus functionality for a product, you assign a fee type to the product before adding it to the contract. Only rate-based products can be associated with a fee type and cost-plus functionality. Only one fee type can be associated to a rate-based contract line. When the product is added to the contract and the contract is saved, the system automatically creates a Contract Amounts page for the contract line that is specific to the fee type. If you use billing and revenue templates to automatically create billing and revenue plans for the cost-plus contract lines, then upon saving the contract, billing and revenue plans are automatically generated in a pending status. Billing and revenue worksheets that are specific to the contract line fee type are also automatically created and associated with the billing and revenue plans.

Note. If you add a contract line with an incorrect fee type to the contract, you must first delete the contract line and then add a new product with the correct fee type. This is required because the Contract Amounts page and billing and revenue worksheets (if billing and revenue plans are defined for the contract line) that are automatically created for the contract line are fee specific. If you have already defined billing and revenue plans for the contract lines, you must also unassign the billing and revenue plans from the contract line first before deleting the contract line.

Page Used to Add Products to Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Add Contract Lines	CA_OFFERING_SRCH	Customer Contracts, Create and Amend, General Information, Lines Click the Add Contract Lines button on the Contract – Lines page.	Use to select and add amount-based, rate-based, and rate-based with fee types contract lines to a contract.

Page Name

Definition Name

Navigation

Usage

Add Contract Lines

CA_OFFERING_SRCH

Customer Contracts, Create and Amend, General Information, Lines

Click the Add Contract Lines button on the Contract – Lines page.

Use to select and add amount-based, rate-based, and rate-based with fee types contract lines to a contract.

Adding Products with Cost-Plus Functionality to a Government Contract

Access the Add Contract Lines page.

Search Products

Use the fields in this section to enter search criteria to limit the search results to only products matching your criteria. Only products associated with the Rate price type are eligible for cost-plus functionality. Only products associated with a price type of rate or amount are eligible to be added to government contracts.

Search Results: General Tab

Product	Displays the product identifier for the product as entered on the Product Definition page.
Price Type	Displays the price type assigned to the product on the Product Definition-Contracts Options page.
Fee Type	Assign a fee type to products with a price type of Rate to add the product to the contract with cost-plus functionality. Values include: None: Appears by default. Select this value to add the product as a regular rate-based contract line without cost-plus functionality. Award: Select this value to calculate award fees for the contract line. Award fee represents a base fee percentage that is used to compute a base fee, and an extra award fee that government contractors are awarded for either producing certain deliverables or for finishing their work by a certain date (or a combination of these). Fixed: Select this value to calculate fixed fees for the contract line. Fixed fees represent an agreed upon percentage between the government and the government contractor. Incentive: Select this value to calculate incentive fees for this contract line. Incentive fees represent cost-sharing scenarios for fees between the contractor and the government. Other: Select this value to calculate other fees for this contract line. Other fees represent any fee type that is not associated with any special attributes.
Start Date	Enter a start date for the contract line. The value that you enter here populates onto the Contract – Lines page. The system uses this start date to initiate billing for products with recurring price types. In addition, if this contract line is associated with a template with a basis date source option of Contract Line Start Date, the system uses this start date when populating events onto the contract line. Note. You must enter a value in the Contract Line Start Date field if a template with a basis date source option of Contract Line Start Date is associated with the product that you are adding to the contract. Note. This field is not available for entry if you selected the Product Kits check box in the Search group box.
End Date	Enter an end date for the contract line. The value that you enter here populates onto the Contract – Lines page. The system displays the latest end date from all contract lines that are defined for the contract on the Contract – General page. Note. This field is not available for entry if you selected the Product Kits check box in the Search group box. This field is also not available for entry if you selected Recurring in the Price Type field.
Quantity	Enter the quantity of the product selected.
UOM (unit of measure)	Displays the default unit of measure assigned to the product. You can select a different unit of measure from those values previously defined for the product.

Search Results: Templates Tab

Select the Templates tab.

Revenue Plan

Select a predefined revenue plan template to automatically create a revenue plan for the contract line. Cost-plus contract lines require that you use revenue plan templates associated with an as-incurred revenue plan method. If you select a revenue plan template associated with a revenue plan method other then as-incurred, the system will not allow you to add the product onto the contract.

Billing Plan

Select a predefined billing plan template to automatically create a billing plan for the contract line. Cost-plus contract lines require that you use billing plan templates associated with an as-incurred billing plan method. If you select a billing plan template associated with a billing plan method other then as-incurred, the system will not allow you to add the product onto the contract.

Billing Plan Detail

Select a billing plan detail template to automatically populate the Billing Plan General page for the contract line.

Create Plans from Template

Select to enable the system to automatically create billing and revenue plans from billing and revenue plan templates assigned to the product. Billing and revenue plan templates are automatically created when the products are added to the contract and the contract is saved.

Combine Like Templates

Select to automatically combine multiple products onto the same billing or revenue plan when the product is assigned to the same billing or revenue plan template. This option does not apply to cost-plus contract lines as they must be assigned to their own individual billing and revenue plans. The attributes of the billing and revenue plans for cost-plus contract lines are created specifically to meet the needs of the fee type assigned to the rate-based product. This option can be used to combine billing and revenue plan for amount-based products and rate-based products assigned a fee type of None.

Add Contract Lines

Click this button to add the selected products to your contract.

Creating Ad Hoc Products for Cost-Plus Contract Lines

This section provides an overview of creating ad hoc products for cost-plus contract lines and discusses how to create ad hoc products for cost-plus contract lines.

Understanding Creating Ad Hoc Products for Cost-Plus Contract Lines

When adding contract lines to your government contracts, you can either select from the amount and rate-based products previously defined in your PeopleSoft Contracts system, or you can define a product that is specific to the contract that you are creating. Contract specific products are referred to as ad hoc products and are defined after you have created your contract and are adding your contract lines.

When you create an ad hoc product for a government contract, you must select a price type of either rate or amount. If you are defining an ad hoc product that will require cost-plus functionality, then you must specify Rate as the price type and you must also assign a fee type to the product of Fixed, Award, Incentive or Other. After you define the basic information for the product, you can add the product to the contract and assign the contract line attributes needed for processing.

Ad hoc products are only available to be used on the contract for which they were created. However, you can make these products generally available to your other contracts by using the Create Products from Ad Hoc Products feature in PeopleSoft Contracts.

See Also

Creating Products from Ad Hoc Products

Page Used to Create Ad Hoc Products for Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Create Adhoc Product	CA_PROD_ADHOC	Click Create Adhoc Product button on the Add Contract Lines page.	Create an ad hoc product that is used only for a specific contract. You can convert the product to be generally available to all government contracts also.

Creating Ad Hoc Products for Cost-Plus Contract Lines

See Creating Ad Hoc Product Lines, Creating Products from Ad Hoc Products.

Pricing Cost-Plus Contract Lines

This section provides an overview of pricing cost-plus contract lines and discusses how to define rate plans.

Understanding Pricing Cost-Plus Contract Lines

This section discusses:

Pricing cost-plus contract lines.
Defining rate plans for cost-plus contract lines.

Pricing Cost-Plus Contract Lines

Rate-based contract lines are priced using PeopleSoft Project Costing rate sets and rate plans. Cost-plus contract lines have three cost components that must be calculated and reported to the government for the companies to receive proper payment for their services:

Direct costs: Direct costs represent the actual costs directly associated with the contract and are generally reimbursed by the government at the actual cost rate.
Indirect costs: Indirect costs represent overhead costs that are incurred as a result of performing the contract.

Examples of indirect costs can include general and administrative expenses, fringe benefit expenses, and cost of money. To determine the amount of indirect costs that are eligible for reimbursement by the government and for revenue recognition, the contract uses government approved indirect costing rates. Indirect costs for billing purposes are based on provisional rates and exclude nonbillable costs. Indirect costs for revenue recognition are based on forward pricing rates and include nonbillable costs.

A contractor could use the same rate for billing and revenue recognition or they may use completely separate rates. If separate rates are used, then the contractor would use variance pricing to balance the amount billed with the amount recognized as revenue, throughout or at the end of, the contract.
Fees: Fees represent the profit that is received based on the services that are rendered by the government contractor.

A government contract may include one, or a combination of, the fee types of Fixed, Award, Incentive, or Other. Only one fee type can be assigned to a rate-based contract line at any one point in time. Fees are subject to limits for billing and revenue and may have different limit levels applied for billing and for revenue.

Defining Rate Plans for Cost-Plus Contract Lines

To set up the complex pricing required for cost-plus contract lines, PeopleSoft Contracts uses PeopleSoft Project Costing rate sets and rate plans. If you will be using separate rates to calculate your indirect costs for billing and revenue you must define a billing rate set and a revenue rate set respectively. To calculate direct costs, you must define a costing rate set.

Because PeopleSoft Contracts only allows you to assign one rate set to a contract line at any particular point in time, after you define the rate sets required for your business needs, you must combine the rate sets onto a rate plan. The rate plan is assigned to the cost-plus contract line on the Related Projects page. It is this relationship that enables you to calculate the direct and indirect costs used to bill and recognize revenue for your cost-plus contract lines.

You define your rate sets to apply the rates you define to your source transactions. After you have defined all of the rate sets that you need, you assign the rate sets to a rate plan. The rate plan can contain as many costing rate sets as needed along with your billing and revenue rate sets. The rate plan enables you to stack your rate sets so that you can generate costing rows from your original source transactions and then generate another set of costing rows using the target rows from the previous rate set. You can then bill and recognize revenue based on the resulting target rows.

When you define a rate set, you identify whether the rate set is a standard or contract-specific rate set. Standard rate sets can be used to price transactions for any contract in your organization. Contract-specific rate sets are rate sets designed for a particular contract and cannot be used to price transactions for any other contract except the one that it was built for. When defining rate plans, you identify whether the rate plan is a standard or contract-specific rate plan. Standard rate plans, which can only contain standard rate sets, can be used to price transactions for any contract in your organization. PeopleSoft Contracts enables you to create a contract-specific rate plan using standard or contract specific rate set types, or some combination of both, to provide you with the greatest degree of flexibility when defining your pricing requirements.

Defining Rate Plans for Cost-Plus Contract Lines Example

If you will be setting up complex pricing scenarios that include rate stacking you must define your rate sets accordingly. The following example discusses one possible scenario for setting up rate stacking.

You define a rate plan containing the following rate sets:

Rate Set	Basis	Rate Set Type	Rate Definition Type
PROV1	Original	Standard	Cost
PROV2	Target	Standard	Cost
FRDP1	Original	Standard	Cost
FRDP2	Target	Standard	Cost
BILL	All	Standard	Billing
REVENUE	All	Standard	Revenue

According to your rate plan setup and the basis value specified for each rate set, when you run the Pricing Engine, the system applies the cost rates, bill and revenue rates sequentially in the order that you have listed them on the rate plan. After the pricing engine has priced the original contract line transactions using the first provisional costing rate set, PROV1, the Pricing Engine applies the rates from the second provisional costing rate set, PROV2 to the resulting target rows from the first rate set. The results will give you the indirect billing costs using your provisional rates.

To generate your forward pricing revenue costs, the Pricing Engine applies the rates from the first forward pricing rate set, FRDP1, to the contract line's original cost transactions. The Pricing Engine then applies the rates from the next forward pricing rate set, FRDP2, to the resulting target rows from the previous rate set, FRDP1.

By setting the basis for your billing and revenue rate sets to All; when the Pricing Engine generates the billing rows for the contract line, it will use the target rows from both provisional rate sets to generate the BIL rows that are eligible to be passed to PeopleSoft Billing. When the Pricing Engine generates the revenue rows for the contract line, it will use the target rows from both the forward pricing rate sets to generate the REV rows that are eligible for revenue recognition.

To enable the Pricing Engine to stack your indirect costs rates as described, you must define your rate sets properly. In the above example, for the second rate set to use the resulting target rows from the first rate set, you must include the target analysis type from the first rate set in the second rate sets source criteria. For example, your first rate set, PROV1, might include the following values in its source definition:

Analysis Type	Source Type	Category	Subcategory	Project Role	Job Code	Time Reporting Code
PAY	LABOR	ENG	DIR	%	%	%

The rate set's target definition could include the following values:

Rate Option	Rate Amount	Description	Target Analysis Type	Target Source Type	Target Category	Target Subcategory
MUP	0.500	Fringe-Provisional	PRV	%	%	FRING
MUP	1.200	Overhead-Provisional	PRV	%	%	OVH
MUP	0.500	G&A-Provisional	PRV	%	%	G&A

When the Pricing Engine prices the original cost transactions using the rate set, PROV1, the resulting target rows will be assigned an analysis type of PRV. For the rate set, PROV2, to apply it's rates against the resulting target rows from the rate set PROV1, you must define the source and target definitions to include the following data:

Analysis Type	Source Type	Category	Subcategory	Project Role	Job Code	Time Reporting Code
PRV	LABOR	%	OVH	%	%	%

The rate set's target definition could include the following values:

Rate Option	Rate Amount	Description	Target Analysis Type	Target Source Type	Target Category	Target Subcategory
MUP	0.300	G&A on Overhead	PRV	%	%	G&A

By setting up the rate set, PROV2, as indicated above, the Pricing Engine will apply the rates to all transactions rows with the analysis type of PRV that meet the criteria defined in the rate set PROV2.

When you define your billing rate set to generate billing rows from your provisional indirect costs rates, you must include the target analysis type from your cost rates in your source criteria for your billing rate set. In this example, the rate plan indicates that the Pricing Engine should include all eligible provisional cost target rows when generating billing rows. To enable this to happen, you would set up your BILL rate set source criteria and target definition as follows:

Analysis Type	Source Type	Category	Subcategory	Project Role	Job Code	Time Reporting Code
PAY	LABOR	ENG	DIR	%	%	%
PRV	%	%	%	%	%	%

The rate set's target definition could include the following values:

Rate Option	Rate Amount	Description	Target Analysis Type	Target Source Type	Target Category	Target Subcategory
NON	1.000	Billing for Direct Costs	BIL
NON	1.000	Billing for Indirect Costs	BIL

This same methodology described in this section for processing provisional rates and billing rows applies to processing forward pricing rates and generating revenue rows.

Page Used to Price Cost Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Rate Plans	PC_RATE_PLANS	Setup Financials/Supply Chain, Product Related, Project Costing, Pricing Structure, Rate Plans Project Costing, Project Costing Center, Configuration Pricing Structure, Rate Plans	Create any combination of cost, billing, and revenue rate sets together to perform complex pricing scenarios for your cost-plus contract lines. Revenue rate sets can only be defined if the Separate Billing and Revenue check box on the Installation Options-Contracts page is selected.

Setting Up Rate Plans

See Defining Rate Plans.

Defining Cost-Plus Contract Fees

This section provides an overview of cost-plus contract fees and discusses how to:

Define fee types.
Define fee worksheet analysis types.

Understanding Cost-Plus Contract Fees

This section discusses:

Fee types.
Setting up a contract to manage cost-plus contract fees.
Fee statuses.

Fee Types

Cost-plus contract line fees represent the profit received for work performed on a government contract. PeopleSoft Contracts supports the following four fee types:

Fixed: Fixed award fee types are the most common fee types used by the government.

Fixed fees are an agreed upon percentage between the government and the government contractor. These fees are applied on top of total costs and represent the profit for performing the service or creating the products for the government. As with all fee types, fixed fees are subject to a funded and revenue fee limit amount determined by the government.
Award: Award fees are comprised of two elements: the base fee amount and an additional award fee amount that can be earned by meeting certain deliverables, by finishing the work by a certain date, or some combination of these two actions.

The additional award fee cannot be billed to the government until approval has been received to do so. The government contractor may receive all, part or none of the additional award fee. Both the base fee amount and the additional award fee are subject to funded and revenue fee limit amounts determined by the government.
Incentive: Incentive fees are directly tied to the performance of the government contractor on the contract.

The government shares costs that may be over or under a target cost amount. When the contract is completed, the contractor can request a fee amount based on the total funded costs, maximum and minimum fee range, and overrrun or underrun cost percentages that are agreed upon when the contract is signed. The fee request is also subject to both funded and revenue fee limits.
Other: Other fees represent all other fee types that are not designated with any special attributes.

Other fees enable you to capture an amount that you specify which is subject to billing and revenue fee limits defined by the user.

Setting Up a Contract to Manage Cost-Plus Contract Fees

To manage your contract line fees you define a contract with a contract classification of Government. You must select rate-based products to add to the contract and assign a fee type to the product requiring cost-plus functionality. Each contract line can represents one fee type. Only one fee type can be assigned to a contract line at any point in time, but a contract can contain multiple contract lines assigned to different fee types. When you assign fee types to a product and add them to a contract, cost-plus functionality is enabled, you can create and manage the fees for the contract lines as needed, and bill and recognize revenue for your fee amounts.

Fees are calculated using billing and revenue fee worksheets. If you choose to use different rates to calculate your billing and revenue fee amounts for your contract lines, then you will have separate billing and revenue fee worksheets. If you use the same rates for billing and revenue recognition, then you will only have billing fee worksheets and that fee worksheet data is used to calculate both billing and revenue recognition fees. However, billing and revenue plans are still required to bill and recognize revenue for the contract lines outside of fee processing.

Billing and revenue fee worksheets are incorporated into the billing and revenue plans assigned to the contract lines. For cost-plus contract lines (rate-based contract lines associated with a fee type), you must define an individual billing and revenue recognition plan for each contract line, and you must use the billing and revenue recognition method of As-Incurred. Cost-plus contract lines require their own individual billing and revenue recognition plans because the billing and revenue fee worksheet created by the system for the billing and revenue plans assigned to the contract lines are unique to the fee type assigned.

Billing and revenue plans are required to generate invoices and accounting entries for the contract lines as work is completed. The billing and revenue fee worksheets are required to calculate the billing and revenue fee amounts that can be billed to your customer or recognized as revenue. To manage and process incentive and award fee amounts, Contacts delivers award schedules that enable you to define fee events that can be controlled using either dates or milestones.

In addition to calculating and managing your fee amounts, you must also define the limit amounts for your funded and revenue costs, as well as fee limits. When you prepare a fee worksheet for fee generation, the system calculates a proposed fee amount. You can accept the proposed fee amount or override that amount and enter a different amount. When you save the page or submit the fee for processing, the system automatically calls the fee limit processor. This process checks the fee amount requested against the billing or revenue fee limit defined as well as whether the transaction falls within any period of performance dates specified. If the requested fee amount is within the limit parameters, then the fee is passed and can be billed or recognized as revenue. If the fee amount exceeds the limit amount, then the fee request is rejected, and either reset to the system calculated proposed fee amount or reset to zero.

The fee amount is generated at a summary level and stamped with the project and activity designated as the target and assigned to the contract line on the Related Projects page.

Note. To display revenue fee data on the Limits report, you must either process the revenue fees or complete the revenue fee worksheet and save it.

Cost-Plus Contract Fee Statuses

When fees are calculated by the system, it uses the cost rows for the contract lines that are stored in the Project Costing Project Transaction tables. To ensure that costs are not used twice in fee calculations, the system assigns a fee status to each cost row. PeopleSoft Contracts uses the following fee statuses:

Blank: A blank fee status indicates that no fees have been calculated using this cost row.

Cost rows with a blank fee status can be used by the fee worksheet to generate fee rows.
1 (one): A fee status of 1 indicates that the cost row has already been used to calculate fees and cannot be used to generate additional fee rows.
2 (two): A fee status of 2 indicates that the cost row is an actual billing (BIL) fee row.
3 (three): A fee status of 3 indicates that the cost row is an actual billing (BIL) additional award fee row.
4 (four): A fee status of 4 indicates that the cost row is an actual revenue (REV) fee row.
5 (five): A fee status of 5 indicates that the cost row is an actual revenue (REV) additional award fee row.

Pages Used to Define Cost Plus Fee Types

Page Name	Definition Name	Navigation	Usage
Fee Definition	CA_BU_FEE_DEF	Setup Financials/Supply Chain, Business Unit Related, Contracts, Contracts Business Units, Fee Definition	Define the fee types that are assigned to your contracts and set up the processing criteria and transaction exclusions used in calculating and generating fee rows.
Analysis Groups	PROJ_AN_GRP_MAP	Setup Financials/Supply Chain, Product Related, Project Costing, Transaction Options, Analysis Groups, Analysis Groups	Define analysis groups containing the analysis types used by the system to calculate billing and revenue fees for cost-plus contract lines.

Setting Up Fee Definitions

Select the Contract BU Definition-Fee Definition page.

Before you can assign fee types to cost-plus contract lines, you must first define the fee types will be used for your contracts at the business unit level. Fee types enable you to define the criteria that is used for calculating and generating fee rows for your contract lines, and enable you to exclude specific transactions from those calculations.

PeopleSoft Contracts supports the fee types of Fixed, Award, Incentive and Other. When adding a contract line associated with a fee type (cost-plus) to a contract, you must have first defined the fee type or you cannot save the contract.

See Defining PeopleSoft Contracts Business Units.

Defining Fee Worksheet Analysis Types

When defining the fee types associated with your cost-plus contract lines for fee calculations, you must specify the analysis groups that contain the billing and revenue analysis types assigned to the cost rows used in the calculation of fee amounts. If you are using different rates to calculate your billing and revenue fees, then you must define a billing and revenue fee analysis group and associate all relevant analysis types to them. If you will be using the same rates to calculate billing and revenue fees, then only a billing analysis group is required.

PeopleSoft Contracts delivers the following sample analysis groups and analysis types to enable you to calculate and process billing, revenue, and fee amounts for your contract lines:

Analysis Groups	Analysis Types	Usage
BFEE (Billing Fee)	BIL(Billing) BLD (Billed) BAJ (Billing adjustments)	The billing fee analysis group contains the analysis types used for billing fee calculations for cost-plus contract lines. As transactions occur against projects and activities associated with the contract line, they are priced, using the PeopleSoft Billing rate set, and stored in PeopleSoft Project Costing. The pricing process assigns the analysis type to the priced transactions.
RFEE (Revenue Fee)	REV (Revenue) BAJ (Billing adjustments)	The revenue fee analysis group contains the analysis types used for revenue fee calculations for cost-plus contract lines. As transactions occur against projects and activities assigned to the contract line, they are priced using the Revenue rate set, and stored in PeopleSoft Project Costing. The pricing process assigns the analysis type to the priced transactions. This analysis group is used only when you have selected theSeparate Billing and Revenue check box on the Installation Options-Contracts page. If you have not selected this option, then the fields for setting up this analysis group are hidden.
PSWKS (Billing Worksheet)	BIL (Billing) BRT (Billing retainage) DEF (Billing deferral) OLT (Over the limit) PMR (Proposal Management reversal)	The PSWKS analysis group contains the analysis types selected by the Contracts/Billing Interface (CA_BI_INTFC) process to bill for contract lines and billing fee rows. Note. The BRT and PMR analysis types are not applicable to government contracts.
PSREV (Revenue)	BAJ (Billing adjustments) BIL (Billable amount) BLD (Billed amount) DSC (Billing discount) OLT (Over-the-limit) UAJ (Prepaid utilization adjustment) UTL (Prepaid utilization billing) WTO (Write off) WWO (Withholding write-off)	The PSREV analysis group contains the analysis types selected by the As-Incurred Revenue (PSA_ACCTGGL) process to generate revenue accounting entries for rate-based contract lines, rate-based contract lines associated with fee types (cost-plus) and revenue fee rows. Note. If you have not selected the Separate Billing and Revenue option on the Installation Options-Contracts page, this is the analysis group used by the system when generating revenue accounting entries.
PSRV2 (Revenue separate from Billing)	BAJ (Billing adjustments) REV (Revenue) ROL (Revenue over-the–limit) UAJ (Prepaid utilization adjustment) UTL (Prepaid utilization) WTO (Write off) WWO (Withholding write-off)	The PSRV2 analysis group contains the analysis types selected by the As-Incurred Revenue (PSA_ACCTGGL) process to generate revenue accounting entries for rate-based contract lines, rate-based contract lines associated with fee types (cost-plus) and revenue fee rows when you have selected the Separate Billing and Revenue check box on the Installation Options-Contracts page.

See Understanding Transaction-Related Control Data.

Running the Pricing Engine for Cost-Plus Contract Lines

This section provides an overview of setting up the pricing engine for cost-plus contract lines, and discusses how to set up the pricing engine for cost-plus contract lines.

Understanding Running the Pricing Engine for Cost-Plus Contract Lines

When a contract is awarded, a contractor can bill and recognize revenue for direct costs, indirect costs, and fees associated with the performance of the contract. Through its integration with PeopleSoft Project Costing, PeopleSoft Contracts enables you to define the rates and perform pricing to generate cost, billing, and revenue amounts on source transactions that occur against a government contract. Before you can create and record your costs and indirect costs for your contract lines you must define rate sets and rate plans and assign them to the contract lines. Rate plans are assigned to cost-plus contract lines to accommodate the complex pricing needs of government contracts associated with fees.

After the contract is defined and activated, you can begin pricing the transactions that occur against the contract lines using the rate plans that you defined. When transactions are processed from feeder systems into PeopleSoft Project Costing, the Pricing engine is called. The Pricing run control page enables you to select pricing options to generate cost rows, billing rows, revenue rows, or a combination of the three. The check boxes that you select correspond to the rate definition types assigned to the rate set of Billing, Cost, Cost/Billing, or Revenue. For cost-plus contract lines, the pricing engine looks to the rate sets that are associated to the rate plan that is assigned to the contact line, and processes the costing rates, bill rates, and revenue rates in the order that they are entered on the rate plan.

To determine which rows are eligible for pricing and repricing for cost-plus contract lines, the system uses distribution statuses, system sources and fee statuses assigned to the transaction rows. When the pricing engine runs, it processes transaction rows that are assigned analysis types that are within the analysis group PSWKS (for billable transaction cost rows), PSCST (for costing transaction rows), PSREV (for revenue transaction rows), or PSRV2 (for revenue transaction rows if you are using separate rates for billing and revenue).

You can also use the pricing engine to reprice unpriced transaction rows or rows that were previously priced when rate changes occur. Rows can be repriced if they have not yet been billed, have not been sent to the general ledger, or if fees have not yet been created for the transaction row (the transaction row cannot have a fee status of 1). Cost rows that have generated more then one billing or revenue row, or that are in the process of being billed or recognized as revenue, are ineligible for repricing.

Note. The same run control page is used to run pricing for both government contracts and non-government contracts. To run pricing for only government contracts, you must specify the contract classification of Government on the run control page.

See Also

Pricing Rate-Based Contract Lines

Performing Variance Pricing

Project Pricing

Page Used to Run the Pricing Engine for Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Pricing	PC_PRICING	Project Costing, Utilities, Pricing	Run the pricing process to price or reprice transaction rows for costs, billing, or revenue recognition for cost-plus contract lines.

Running the Pricing Engine for Cost-Plus Contract Lines

See Running the Pricing Application Engine Process.

Setting Up Revenue Plans for Cost-Plus Contract Lines

This section provides an overview of cost-plus revenue plans, lists prerequisites and common elements and discusses how to:

Define cost-plus revenue plans.
Define fixed fee revenue fee worksheets.
Define award fee revenue fee worksheets.
Define incentive fee revenue fee worksheets.
Define other fee revenue fee worksheets.
Create award schedules.
Create incentive fee schedules.
Adjust award fees.
Adjust incentive fees.
Assign cost-plus contract lines to revenue plans.

Understanding Setting Up Revenue Plans for Cost-Plus Contract Lines

A government contract can consist of multiple contract lines with complex and diverse revenue recognition requirements. To manage these requirements, PeopleSoft Contracts uses revenue plans. For cost-plus contract lines, revenue plans store the timing of when revenue recognition occurs, enable you to define revenue events to control the processing of fees, and enable you to calculate fee amounts using a revenue fee worksheet. Revenue fee worksheets display the data from the billing fee worksheet to enable you to perform a side-by-side comparison of your billing and revenue fee data when managing your revenue fees.

Revenue plans are required for every contract line to process revenue for those contract lines. For cost-plus contract lines, every contract line must be assigned to a unique revenue recognition plan as the revenue fee worksheet associated with the revenue plan is unique to the fee type associated with the contract line.

If you have not selected the option to apply separate rates for billing and revenue, you will not have a revenue fee worksheet associated with your revenue plans, but will still be required to define revenue plans for your contract lines. When billing and revenue rates are the same, the system uses the billing fee worksheet to calculate and manage both billing and revenue fees.

When defining revenue plans for your cost-plus contract lines, you can assign the contract lines to revenue plans manually or by using an as-incurred revenue plan template. If you use a revenue plan template to set up the revenue plans for the contract lines, you can select the template on the Add Contract Lines page when adding the products to your contract, or you can select the template on the Assign Revenue Plans page. If you assign the revenue plan template to the contract line on the Add Contract Lines page, the system will automatically create the revenue plan after the contract line is added to the contract and saved.

After the contract line is added to the contract and the revenue plan is created, you must complete the fields on the revenue plan to enable processing to occur. Award and incentive fees also have an award schedule that must be completed to recognize fee revenue for those fee types. The award schedule enables you to set up events, using milestones or dates, that enable you to control when the fee amounts are processed.

To generate revenue for the contract lines and any associated fees, the contract must be in an active processing status, the contract line must be active and the revenue plan and any associated events must have a status of Ready. If you are using milestones to control processing for award or incentive fee events, they must have a status of complete.

See Setting Up Revenue Plans.

Prerequisites

Before you can manage revenue for cost-plus contract lines, you must first create a contract with a contract classification of Government, add contract lines associated with fee types to the contract, and associate projects, activities and a rate plan to the contract line.

Common Elements Used in This Section

Acct Date Opt (accounting date option)	Accounting date option.
All Recognizable Costs	Displays the total of all cost rows assigned a revenue (REV) analysis type from the contract line's inception to the current date. This total comes from the revenue rows stored in the Project Costing Project Transactions tables.
Calculated Revenue Fee Ceiling	Displays the calculated total of the total contract line value (the sum total of the funded and revenue limit amounts) less all recognizable costs to date, less the estimated costs to complete, less fees already recognized.
Costs Used In Fee Calculation (Project Costing-Revenue)	Displays the total of all revenue rows from the contract line's inception to the current date that have been assigned a fee status of one (1). To ensure that cost rows are not used multiple times for fee calculations, they are assigned a fee status. A fee status of 1 indicates that the cost row has been used for fee calculations. The minimum valid value for this field is zero, and the maximum valid value for this field is the total of all revenue rows from the contract line's inception to the current date. This total comes from the revenue rows stored in the Project Costing Project Transactions tables.
Cur Period Recognizable Costs (current period recognizable costs)	Displays the total of all revenue rows with a blank fee status value. A blank fee status indicates that the revenue row has not been used for fee calculations. This total comes from the revenue rows stored in the Project Costing Project Transactions tables.
Estimated Run Rate	Displays the computed value of all recognizable costs divided by the sum total of all recognizable costs plus the total of the estimated costs to complete.
Estimated Cost to Complete	Displays the sum total of transactions with a date that is greater than the current date and are assigned analysis types associated with the PeopleSoft Estimated Cost to Complete Analysis group (PSECC). Estimated costs to complete are generally budgeted costs to complete the contract. These transactions are stored in the Project Costing Project Transaction tables.
Revenue Cost Limit	Displays the revenue limit amount entered on the Contract Amounts page for the contract line. The minimum valid value for this field is the inception to date actual costs that have been recognized as revenue. The maximum valid value for this field is the revenue limit amount entered on the Contract Amounts page.
Revenue Fee Limit	Displays the revenue fee limit amount for the contract line using the amount of the funded fee limit. However, you can override this amount if needed. This amount is managed in the individual fee worksheet and can be changed outside of amendment processing.

Pages Used to Manage Revenue for Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Revenue Plan	CA_ACCTPLAN	Customer Contracts, Schedule and Process Revenue, Define Revenue Plan, Revenue Plan	Define a revenue plan for cost-plus contract lines. For each revenue plan that you define, you select a revenue recognition method of as-incurred for the revenue plan, manage the revenue fee worksheet and define revenue fee events for fee types of award and incentive.
Revenue Fee Worksheet	CA_AP_FEE_WS	Customer Contracts, Create and Amend, General information, General. Click the Revenue Plans link. Click the link for the revenue plan ID, Revenue Fee Worksheet.	Evaluate, manage, and generate revenue fee amounts for your cost-plus contract lines.
Revenue Plan	CA_ACCTPLAN	Customer Contracts, Create and Amend, General information, General. Click the Revenue Plans link. Click the link for the revenue plan ID, Revenue Fee Worksheet. Click the Award Fee Amount Proposed link or the Proposed Incentive Fee link, Revenue Plan.	Define revenue fee events for award and incentive fee types.
Fee Adjustment	CA_AP_FEE_ADJ	Customer Contracts, Create and Amend, General information, General. Click the Revenue Plans link. Click the link for the revenue plan ID, Revenue Fee Worksheet. Click the Proposed Incentive Fee link, Revenue Plan. Click the Adjustment Fee link, Fee Adjustment.	Enter fee adjustment amounts when fee amounts, percentages, or limits have changed over the life of the contract.
Assign Revenue Plan	CA_AP_LINK	Customer Contracts, Schedule and Process Revenue, Assign Revenue Plan	Assign or unassign contract lines to revenue plans. You can first define revenue plans and assign the contract lines to these existing revenue plans, or you can first assign the lines to a new revenue plan and then define the details of the revenue plan.

Defining Cost-Plus Revenue Plans

See Defining Revenue Plans.

Defining Fixed Fee Revenue Fee Worksheets

Access the Revenue Fee Worksheet page for fixed fees (Customer Contracts, Create and Amend, General information, General. Click the Revenue Plans link. Click the link for the revenue plan ID, Revenue Fee Worksheet.

When you define a revenue plan for a cost-plus contract line associated with a fee type of Fixed, the system automatically creates a revenue plan with a revenue fee worksheet containing fields that are specific to fixed fee processing.

Revenue Fee Calculation

Fixed Fee Already Created	Displays the total for the fixed fee revenue rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table. Note. For this value, the system retrieves the fixed fee revenue rows that are assigned the analysis type specified in the Revenue Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).
Fixed Fee Percent	Displays the calculated total of the revenue fee limit divided by the sum of all recognizable costs plus the estimated cost to complete. This amount can be overridden if needed.
Proposed Fixed Fee	Displays the calculated total of the current period's recognizable costs (all revenue cost rows for the contract line with a blank fee status) multiplied by the revenue fixed fee percent. In calculating the proposed fee amount, the system evaluates current period costs, fee percentages, the fee limit, the fees created to date, and any changes or adjustments made. You can accept the proposed fee or override it by entering a different fee amount and selecting the Override option. Note. If you select the processing option of Process Automatically, the system uses the fee amount proposed by the system.
Current Period Fixed Fee	Displays the fixed fee total for the current period after the fee limits process has run.

Billing Amounts - Amounts from Contract Amt Page

Fixed Fee Percent

Displays the fixed fee percentage entered on the Contract Amounts page for the contract line.

Billing Fee Calculation

Fixed Fee Already Created

Displays the total for the fixed fee billing rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table.

Note. For this value, the system retrieves the fixed fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).

Proposed Fixed Fee

Displays the proposed fixed fee amount from the billing worksheet for the contract line.

Defining Award Fee Revenue Fee Worksheets

Access the Revenue Fee Worksheet page for award fees.

When you define a revenue plan for a cost-plus contract line associated with a fee type of Award, the system automatically creates a revenue plan with a revenue fee worksheet containing fields that are specific to award fee processing. Award fees are managed using milestone or date events. You define your events using the award schedule.

Billing Base Fee Calculation

Base Fee Already Created	Displays the total for the award base fee revenue rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table. Note. For this value, the system retrieves the award base fee revenue rows that are assigned the analysis type specified in the Revenue Target Fee Attributes group box on the Fee Definition page for this fee type. The Fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).
Base Fee Percent	Displays the calculated total of the revenue fee limit divided by the sum of all recognizable costs plus the estimated cost to complete. This amount can be overridden if needed.
Proposed Base Fee	Displays the calculated total of the current period's recognizable costs (all revenue cost rows for the contract line with a blank fee status) multiplied by the revenue base fee percent. You can accept the proposed fee or override it by entering a different fee amount and selecting the Override option. Note. If you select the processing option of Process Automatically, the system uses the fee amount proposed by the system.
Current Period Base Fee	Displays the award base fee total for the current period after the fee limits process has run.

Revenue Award Fee Calculation

Award Fee Already Created	Displays the total for the additional award fee revenue rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table. Note. For this value, the system retrieves the additional award fee revenue rows that are assigned the analysis type specified in the Revenue Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).
Additional Award Fee Limit	Displays the additional award fee limit based on the amounts defined on the Contract Amounts page for the contract line. You can override this value if needed.
Award Fee Amount Proposed	Displays the calculated total of the current period's recognizable costs (all revenue cost rows for the contract line with a blank fee status) multiplied by the revenue award fee percent.
Current Period Award Fee	Displays the additional revenue award fee total for the current period after the fee limits process has run.

Billing Amounts - Amounts from Contract Amt Page

Base Fee Percent

Displays the award base fee percentage entered on the Contract Amounts page for the contract line

Billing Base Fee Calculation

Base Fee Already Created

Displays the total for the award base fee billing rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table.

Note. For this value, the system retrieves the award base fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).

Proposed Base Fee

Displays the proposed award base fee amount from the billing worksheet for the contract line.

Billing Award Fee Calculation

Award Fee Already Created	Displays the total for the additional award fee billing rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table. Note. For this value, the system retrieves the additional award fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).
Additional Award Fee Limit	Displays the additional award fee limit defined in the Contract Amounts page for the contract line.
Award Fee Amount Proposed	Displays the proposed additional award fee amount from the billing worksheet for the contract line.
Current Period Award Fee	Displays the additional billing award fee total for the current period after the fee limits process has run.

Defining Incentive Fee Revenue Fee Worksheets

Access the Revenue Fee Worksheet page for incentive fees.

When you define a revenue plan for a cost-plus contract line associated with a fee type of Incentive, the system automatically creates a revenue plan with a revenue fee worksheet containing fields that are specific to incentive fee processing. Incentive fees are managed using milestone or date events. Define your events using the Award Schedule page. When entering in your fee percentages, zero is the lowest value that can be entered.

Revenue Amounts - Amounts from Contract Amt Page

Cost Share Overrun	Displays the cost share overrrun percentage entered on the Contract Amounts page. The overrun percentage is used to adjust the target fee percentage that can be recognized as revenue.
Cost Share Underrun	Displays the cost share underrun percentage entered on the Contract Amounts page. The overrun percentage is used to adjust the target fee percentage that can be recognized as revenue.
Target Fee Percent	Displays the target fee percentage entered on the Contract Amounts page. The target fee percentage is used to calculate the target fee amount.
Target Fee Amount	Displays the calculated total of the revenue cost limit amount multiplied by the target fee percent.
Minimum Fee Percent	Displays the minimum fee percentage entered on the Contract Amounts page. This value represents the minimum fee percentage that can be recognized as revenue for the contract line.
Minimum Fee Amount	Displays the calculated total of the revenue cost limit amount multiplied by the minimum fee percent.
Maximum Fee Percent	Displays the maximum fee percentage entered on the Contract Amounts page. This value represents the maximum fee percentage that can be recognized as revenue for the contract line.
Maximum Fee Amount	Displays the calculated total of the revenue cost limit amount multiplied by the maximum fee percent.
Total Maximum Cont Line Value (total maximum contract line value)	Displays the calculated total of the revenue cost limit amount plus the maximum fee amount.

Project Costing - Revenue

Difference

Displays the calculated total of the revenue cost limit amount less the total actual revenue costs to date for the contract line.

Revenue Fee Calculation

Cost Share To Be Used	Displays the cost share overrun or underrun percentage entered on the Contract Amounts page. If the actual revenue costs from the contract line's inception to date are greater than the revenue cost limit amount, then the cost share overrun percentage is used. If the actual revenue costs from the contract line's inception to date are less than the revenue cost limit amount, then the cost share underrun percentage is used.
Cost Share Portion	Displays the calculated total of the value displayed in the Project Costing-Revenue Difference field multiplied by the percentage in the Cost Share To Be Used field.
Cumulative Fee	Displays the calculated total of the cost share portion plus the target fee amount.
Proposed Incentive Fee	Displays the proposed incentive fee amount calculated by the system for the contract line. If the actual revenue costs to date are less then or equal to the revenue cost limit, the system uses the lesser of the cumulative fee amount or the maximum fee amount for the proposed incentive fee. If the actual revenue costs to date are greater then the revenue costs limit, then the system uses the greater of the cumulative fee amount or the minimum fee amount for the proposed incentive fee.
Incentive Fee	Displays the revenue incentive fee total for the current period after the fee limits process has run.

Billing Amounts - Amounts from Contract Amt Page

Cost Share Overrun	Displays the cost share overrrun percentage entered on the Contract Amounts page. The overrun percentage is used to adjust the billable target fee percentage.
Cost Share Underrun	Displays the cost share underrun percentage entered on the Contract Amounts page. The overrun percentage is used to adjust the billable target fee percentage.
Target Fee Percent	Displays the target fee percentage entered on the Contract Amounts page. The target fee percentage is used to calculate the target fee amount.
Target Fee Amount	Displays the calculated total of the funded cost limit amount multiplied by the target fee percent.
Minimum Fee Percent	Displays the minimum fee percentage entered on the Contract Amounts page. This value represents the minimum fee percentage that can be billed for the contract line.
Minimum Fee Amount	Displays the calculated total of the funded cost limit amount multiplied by the minimum fee percent.
Maximum Fee Percent	Displays the maximum fee percentage entered on the Contract Amounts page. This value represents the maximum fee percentage that can be billed for the contract line.
Maximum Fee Amount	Displays the calculated total of the funded cost limit amount multiplied by the maximum fee percent.
Total Maximum Cont Line Value (total maximum contract line value)	Displays the calculated total of the funded cost limit amount plus the maximum fee amount.

Project Costing - Billing

Difference

Displays the calculated total of the funded cost limit amount less the total actual billing costs to date for the contract line.

Billing Fee Calculation

Displays the billing incentive fee total for the current period after the fee limits process has run.

Defining Other Fee Revenue Fee Worksheets

Access the Revenue Fee Worksheet for other fees.

When you define a revenue plan for a cost-plus contract line associated with a fee type of Other, the system automatically creates a revenue plan with a revenue fee worksheet with fields that are specific to award fee processing.

Revenue Fee Calculation

Other Fee Already Created

Displays the total for the other fee revenue rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table.

Note. For this value, the system retrieves the other fee revenue rows that are assigned the analysis type specified in the Revenue Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).

Proposed Other Fee

Enter the proposed other fee amount. When you save the page or submit the worksheet, the system will evaluate the proposed fee amount against the revenue fee limit to determine if it is within the limit amount. The proposed billing other fee amount appears in this field by default when the revenue fee worksheet is first created.

Note. The proposed fee amount that you enter will be the proposed other fee amount for future periods until you manually change the value. After you change the value, the newly entered value will be the new proposed other fee amount for future periods, until you manually change it again, or until the revenue other fee limit is reached.

Current Period Other Fee

Displays the revenue other fee total for the current period after the fee limits process has run.

Billing Fee Calculation

Other Fee Already Created

Displays the total for the other fee billing rows created to date for the contract line. This data is retrieved for the Project Costing Project Transaction table.

Note. For this value, the system retrieves the other fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).

Proposed Other Fee

Displays the billing other fee total for the current period after the fee limits process has run.

Creating Award Schedules

Access the Revenue Plan page for the award fee schedule.

The Revenue Plan – Award Schedule page is used to define events for award fees. The events fields appear when you navigate to the Revenue Plan page from the Revenue Fee Worksheet for Award fees. You can define milestone or date event types to control the timing of when revenue is recognized for award fees. You can enter multiple event rows, but only one event can be set to a Ready status at a time, including adjustment fee events.

Note. Before creating an adjustment fee event using this page, all other events defined on this page must have a status of completed or pending.

Award Fee Detail

Additional Award Fee Limit	Displays the additional award fee limit amount defined on the Contract Amounts page for the contract line assigned to this revenue plan.
Award Fee Already Created	Displays the total for the award fee revenue rows created to date for the contract line assigned to this revenue plan. This data is retrieved for the Project Costing Project Transaction table.
Available Award Fee	Displays the calculated total of the additional award fee limit less the award fee amount already created.
Adjustment Fee	Click to access the Fee Adjustment page where you can enter a fee adjustment event. Fee adjustments cannot be set to Ready status if a fee event on the Revenue Plan page is set to Ready status.

Creating Incentive Fee Schedules

Access the Revenue Plan page for the incentive fee schedule.

The Incentive schedule page is used to define an event for incentive fees. The events fields appear when you navigate to the Revenue Plan page from the Revenue Fee Worksheet for incentive fees. You can define a milestone or date event type to control the timing of when revenue is recognized for incentive fees. You can only enter one event row in this schedule, including adjustment fee events.

Note. Before creating an adjustment fee event using this page, all other events defined on this page must have a status of completed or pending.

Incentive Fee Detail

Cumulative/Proposed Fee	Displays the cumulative or proposed fee amount from the incentive fee worksheet.
Minimum Fee Amount	Displays the calculated minimum fee amount from the incentive fee worksheet.
Maximum Fee Amount	Displays the calculated maximum fee amount from the incentive fee worksheet.
Fee Used	Displays the minimum, maximum or cumulative fee amount used by the system for incentive fee revenue.
Adjustment Fee	Click to access the Fee Adjustment page where you can enter a fee adjustment event. Fee adjustments cannot be set to Ready status if a fee event on the Revenue Plan page is set to Ready status.

Adjusting Award Fees

Access the Fee Adjustment page for award fees.

The Fee Adjustment page enables you to adjust fee amounts that have been processed. You can enter either a negative or positive amount, up to the fee amount that has been recognized to date. Revenue fees that have not yet been processed are adjusted using the revenue fee worksheet, Proposed Amount field. Adjustments to your award fees are not controlled by amendment processing.

Award Fee Details

Additional Award Fee Limit	Displays the additional award fee limit amount defined on the Contract Amounts page for the contract line assigned to this revenue plan.
Award Fee Already Created	Displays the total for the additional award fee revenue rows created to date for the contract line assigned to this revenue plan. This data is retrieved from the Project Costing Project Transaction table.
Available Award Fee	Displays the calculated total of the additional award fee limit less the award fee amount already created.

Adjustment Detail

Adjustment

Displays the sequence number automatically assigned to the adjustment row.

Event Status

Select the status of the event. The event status controls the timing of when the event can be processed. Select from the following statuses:

Pending: Appears by default when you open the Fee Adjustment page.

You can enter a fee adjustment row in pending status and edit the fee adjustment amount.
Ready: Set the fee adjustment row to Ready status when you are ready to process the adjustment.

When you run the As-Incurred Revenue (PSA_ACCTGGL) process to generate the adjustment row, the system checks the adjustment amount against the award fee limit. Only one award fee adjustment row can be set to Ready status at any one time. You cannot set an award fee adjustment row to Ready status if an award revenue fee event row is in Ready status.

Award adjustment rows in Ready status cannot be edited. You must first reset the status to pending to make any changes to the row.
Completed: Set by the system when you run the As-Incurred revenue process.

The system processes the revenue fee adjustment, creates an adjustment entry on the Award schedule page with a status of Adjustment, and sets the adjustment row to a status of Completed. Award adjustment rows in Completed status can no longer be edited.

Amount

Enter a positive or negative fee adjustment amount. The amount that you enter cannot be greater or less than the fee amount that has been recognized to date and cannot exceed the fee limit amount.

Adjusting Incentive Fees

Access the Fee Adjustment page for incentive fees.

The Fee Adjustment page enables you to adjust fee amounts that have been processed. You can enter either a negative or positive amount, but it cannot adjust it such that the fee amount would be higher than the fee limit and it also cannot be an overall negative fee (cannot be less than zero). Revenue fees that have not yet been processed are adjusted using the revenue fee worksheet, Proposed Amount field. Adjustments to your incentive fees are not controlled by amendment processing.

Incentive Fee Detail

Cumulative/ Proposed Fee	Displays the cumulative or proposed fee amount from the incentive fee worksheet.
Minimum Fee Amount	Displays the calculated minimum fee amount from the incentive fee worksheet.
Maximum Fee Amount	Displays the calculated maximum fee amount from the incentive fee worksheet.
Fee Used	Displays the minimum, maximum or cumulative fee amount used by the system for incentive fee revenue.

Adjustment Detail

Adjustment

Displays the sequence number automatically assigned the adjustment row.

Event Status

Select the status of the event. The event status controls the timing of when the event can be processed. Select from the following statuses:

Pending: Appears by default when you open the Fee Adjustment page.

You can enter a fee adjustment row in pending status and edit the fee adjustment amount.
Ready: Set the fee adjustment row to Ready status when you are ready to process the adjustment.

When you run the As-Incurred Revenue (PSA_ACCTGGL) process to generate the adjustment row, the system checks the adjustment amount against the incentive fee minimum and maximum fee ranges. Only one fee adjustment row can be set to Ready status at any one time. You cannot set an incentive fee adjustment row to Ready status if the incentive revenue fee event row is in Ready status.

Incentive fee adjustment rows in Ready status cannot be edited. You must first reset the status to pending to make any changes to the row.
Completed: Set by the system when you run the As-Incurred revenue process.

The system processes the revenue fee adjustment, creates an adjustment entry on the Incentive schedule page with a status of Adjustment, and sets the adjustment row to a status of Completed. Incentive adjustment rows in Completed status can no longer be edited.

Amount

Enter a positive or negative fee adjustment amount. The amount that you enter cannot be greater or less than the fee amount that has been recognized to date and cannot exceed the fee minimum and maximum amounts.

Assigning Cost-Plus Contract Lines to Revenue Plans

You can assign cost-plus contract lines to as-incurred revenue plans using the Assign Revenue Plans page. If you add a cost-plus contract line to a contract with an incorrect fee type, and a revenue plan has already been assigned to the contract line, you must first unassign the contract line from the revenue plan using the Unassign button on this page and then delete the contract line, and re-add it with the correct fee type assigned to the contract line.

See Assigning Contract Lines to Revenue Plans.

Processing Cost-Plus Contract Line Revenue

This section provides an overview of processing revenue for cost-plus contract lines and discusses how to:

Process revenue for cost-plus contract lines.
Adjust revenue for cost-plus contract lines.

Understanding Processing Revenue for Cost-Plus Contract Lines

Processing revenue for cost-plus contract lines consists of two parts: generating revenue accounting entries for the contract lines and generating revenue accounting entries for the associated contract line fees. Before you can generate accounting entries for cost rows and fees, you must complete the following tasks:

Define the accounting rules containing the PeopleSoft Project Costing ChartField combinations and business units for your contract line transactions.
Assign a standard or contract specific rate set or rate plan to your cost-plus contract lines.
Assign projects and activities to your active cost-plus contract lines.
Assign your cost-plus contract lines to as-incurred revenue plans.

Your revenue fee worksheets are part of your revenue plans, and as such, enable you to process both revenue for your cost transactions and any associated fees.
Set your contract to an active processing status.
Set the as-incurred revenue plans and any associated events to a status of Ready.

Before generating revenue accounting entries for cost-plus contact line fees, you must first calculate and generate the fees for each contract line. Using the fee worksheets, you must evaluate the system calculated, proposed fee amount and either accept the amount or enter a different amount. When you click the Submit button on the fee worksheet, the system will evaluate the proposed amount against the revenue limits and fee criteria and determine if the proposed amount can be processed. Once processed, summarized fee rows are generated and posted to the Project Transaction tables in PeopleSoft Project Costing using the fee definition criteria setup for the contract's business unit. If you have selected the Separate Billing and Revenue option on the Installation Options-Contracts page, then you must use the revenue fee worksheets to calculate and generate the revenue fee rows. If you have not selected the Separate Billing and Revenue option on the Installation Options-Contracts page, you must use the billing fee worksheet to calculate and generate both the billing and the revenue fee rows. Fee rows can be created outside of revenue processing and do not change the status of the revenue plan.

After you have generated the fees you can run the As-Incurred Revenue (PSA_ACCTGGL) process to generate the accounting entries for both your contract lines and associated fees. The As-Incurred revenue process performs the following steps:

Selects all eligible revenue and fee transactions from the Project Transactions table (PROJ_RESOURCE) for processing.

If you have selected the Separate Billing and Revenue option on the Installation Options-Contracts page, the As-Incurred Revenue process selects transactions that are assigned analysis types associated with the PSRV2 analysis group. If you have not selected this option, or if the contract line is associated with a fee type of None, then the As-Incurred revenue process selects transactions that are assigned analysis types associated with the PSREV analysis group.
Creates revenue accounting entries for the contract lines and fees according to the processing criteria specified on the As-Incurred Revenue run control page and writes them to the Contracts/Projects Accounting Line (CA_ACCTG_LN_PC) table and assigns the transaction rows a general ledger distribution status (GL_DISTRB_STATUS of Generated (G).

You must run the journal generator process to post the accounting entries from the (CA_ACCTG_LN_PC) table to the general ledger.
Changes the status of the revenue plans and award and incentive fee events to In Progress.

After the journal generator has posted the accounting entries to the general ledger, you must run the Journal Generator Load Update (CA_LOAD_UPD) process to update PeopleSoft Contracts and PeopleSoft Project Costing with the processed revenue data, set the revenue distribution status in the CA_ACCTG_LN_PC table from Generated (G) to Distributed (D) for revenue transactions, and set the Cost distribution status from Generated (G) to Distributed (D) for costing transactions.

Streamline Processing

PeopleSoft Contracts delivers streamline processing to enable you to generate fees and recognize revenue for cost transactions using a single process. By performing a few simple setup tasks, you can set up the As-Incurred Revenue process to perform all of the steps for generating accounting entries for your cost transactions and associated fees, post the entries to the general ledger, and update PeopleSoft Contracts and PeopleSoft Project Costing with the results.

To set up streamline processing for revenue generation for cost-plus contract lines and fees, perform the following steps:

Set up the accounting definition defaults for the Journal Generator at the installation level on the Contracts – Installation Options page.
Select the Process Automatically option on the revenue fee worksheets.

By selecting the Process Automatically option on the revenue fee worksheets, the As-Incurred Revenue process initiates the fee processor to evaluate the fee amount proposed by the system to determine if it meets the revenue fee limit criteria, and submits the fee for processing. The fee is then processed through to the general ledger and fee data updates are sent back to PeopleSoft Contracts and PeopleSoft Project Costing.
Select the Process Milestones option on the Process Project Accounting page. (Optional)

If you are using milestone events for your award or incentive fee schedules, then the milestone status must be complete before the revenue event can be processed. By selecting this option on the Process Project Accounting page, the As-Incurred revenue process initiates the Milestone Processing Application Engine process (CA_MS_PRCS) to update any eligible milestone statuses to Complete.
Select the Process Journal Entries option on the Process Project Accounting page.

By selecting the Process Journal Entries option, the As-Incurred Revenue (PSA_ACCCTGGL) process automatically runs the Journal Generator process and the Journal Generator Update process to book the revenue accounting entries to general ledger for your cost-plus contract lines and fees, and then updates PeopleSoft Contracts and PeopleSoft Project Costing with the booked revenue data.

Page Used to Process Revenue for Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Process Project Accounting	RUN_PSA_ACCTGGL	Customer Contracts, Schedule and Process Revenue, Process As Incurred Revenue, Process Project Accounting.	Run this process to write revenue for rate-based contract lines and rate-based contract lines associated with fee types (cost-plus) to CA_ACCTG_LN_PC. This process picks up rate-based contract lines assigned to as-incurred revenue plans and any associated fees. The system sets the GL_DISTRIB_STATUS for lines and fees that it writes to the CA_ACCTG_LN_PC table to G (generated).

Processing Revenue for Cost-Plus Contract Lines

Access the Process Project Accounting page.

See Processing Transactions Using Accounting Rules.

Adjusting Revenue for Cost-Plus Contract Lines

Throughout the life of the contract, changes may occur that impact revenue costs, limit amounts, or fees. To manage revenue adjustments, PeopleSoft Contracts uses amendment processing to enable you to keep a historical record of any changes that you make. To manage revenue fee adjustments, you must use the revenue fee worksheets and the Fee Adjustment page (if adjusting award or incentive fees).

The following table lists some examples of revenue adjustments that you might make and the tasks required to complete the changes:

Revenue Adjustment	Tasks	Controlled by Amendment Processing
Increase or decrease revenue fee percentage for fixed or award fee types.	Enter the fee percentage change on the appropriate Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Increase or decrease the revenue cost share percentage for incentive fee types.	Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Increase or decrease the revenue target fee for incentive fee types.	Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Increase or decrease the revenue maximum or minimum fee for incentive fee types.	Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Reduce revenue fee amounts due to cost adjustments.	Use the revenue fee worksheet for the contract line and enter a negative revenue fee amount. The fee adjustment cannot be greater than the revenue amount already recognized to date.	No Note. To maintain a historical record of this transaction, use the internal notes page for the contract.
Increase revenue fee amounts due to cost adjustments.	Use the revenue fee worksheet for the contract line and enter the revenue fee adjustment amount.	No Note. To maintain a historical record of this transaction, use the internal notes page for the contract.
Modify the revenue or revenue fee limit amount.	Enter the new revenue limit or revenue fee limit amount on the appropriate Contract Amounts page.	Yes

See Defining Award Fee Revenue Fee Worksheets.

Setting Up Billing Plans for Cost-Plus Contract Lines

This section provides an overview of cost-plus billing plans, lists prerequisites, and discusses how to:

Define cost-plus billing plans.
Define fixed fee billing fee worksheets.
Define award fee billing fee worksheets.
Define incentive fee billing fee worksheets.
Define other fee billing fee worksheets.
Create award fee schedules.
Create incentive fee schedules.
Adjust award fees.
Adjust incentive fees.
Update tax information.
View billing history.
Assign cost-plus contract lines to billing plans.

Understanding Setting Up Billing Plans for Cost-Plus Contract Lines

PeopleSoft Contracts integrates with PeopleSoft Project Costing and PeopleSoft Billing to enable you to generate invoices for cost-plus contract lines and fees. As transactions occur against a contract line, the Pricing Engine prices the transaction and posts the resulting transaction rows in the Project Costing Project Transactions table. Fee rows are also posted to the Project Costing Project Transactions table when fees are generated from the billing worksheets. The Contracts/Billing Interface (CA_BI_INTFC) process selects the eligible billing and fee rows from PeopleSoft Project Costing and passes the transactions to PeopleSoft Billing for invoice generation.

To manage bill processing for cost-plus contract lines, PeopleSoft Contracts uses billing plans. Billing plans store the timing of when billing occurs, enable you to define billing events to control the processing of fees, and enable you to calculate fee amounts using a billing fee worksheet. Billing plans are required for every contract line to process billing for those contract lines.

For cost-plus contract lines, every contract line must be assigned to a unique billing plan as the billing fee worksheet associated with the billing plan is unique to the fee type associated with the contract line. If you have not selected the option to apply separate rates for billing and revenue, the billing fee worksheet is used to calculate both billing and revenue fees.

When defining billing plans for cost-plus contract lines, you can assign the contract lines to billing plans manually or by using an as-incurred billing plan template. If you use a billing plan template to set up the billing plans for the contract lines, you can select the template on the Add Contract Lines page when adding the products to your contract, or you can select the template on the Assign Billing Plan page. If you assign the billing plan template to the contract line on the Add Contract Lines page, the system will automatically create the billing plan after the contract line is added to the contract and saved. A billing plan detail template can also be used to populate or override general billing information on the billing plan when creating a billing plan manually or when using a billing plan template.

After the contract line is added to the contract and the billing plan is created, you must complete the fields on the billing plan to enable processing to occur. Award and incentive fees also have an award schedule that must be completed to generate a billing fee for those fee types. The award schedule enables you to set up events, using milestones or dates, that enable you to control when the fee amounts are processed.

To generate invoices for the contract lines and any associated fees, the contract must be in an active processing status, the contract line must be active, and the billing plan and any associated events must have a status of Ready. If you are using milestones to control processing for award or incentive fee events, they must have a status of Complete.

See Setting Up Billing Plans.

Prerequisites

Before you can manage billing for cost-plus contract lines, you must first create a contract with a contract classification of Government, add contract lines associated with fee types to the contract, and associate projects, activities, and a rate plan to the contract line.

Pages Used to Manage Billing for Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Billing Plan - Billing Plan General	CA_BP_GEN_INFO	Customer Contracts, Schedule and Process Billing, Define Billing Plan, Billing Plan General	Define the high-level billing information for a billing plan. The system associates the information that you define on this page with all billing lines that you create under this billing plan. This information is then sent to PeopleSoft Billing.
Billing Plan - Billing Fee Worksheet	CA_BP_FEE_WS	Customer Contracts, Create and Amend, General information, General. Click the Billing Plans link. Click the link for the billing plan ID, Billing Fee Worksheet.	Evaluate, manage, and generate billing fee amounts for cost-plus contract lines.
Billing Plan - Events	CA_BP_EVENTS	Customer Contracts, Schedule and Process Billing, Define Billing Plan, Billing Plan General, Billing Fee Worksheet Click the Award Fee Amount Proposed or Proposed Incentive Fee link on the Billing Fee Worksheet page.	Define billing fee events for award and incentive fee types.
Billing Plan – Fee Adjustments	CA_BP_FEE_ADJ	Customer Contracts, Schedule and Process Billing, Define Billing Plan, Billing Plan General, Billing Fee Worksheet. Click the Award Fee Amount Proposed or Proposed Incentive Fee link on the Billing Fee Worksheet page. Click the Adjustment Fee link on the Events page.	Enter fee adjustment amounts when fee amounts, percentages, or limits have changed over the life of the contract.
Billing Plan - Tax Parameters	CA_BP_TAX_AI	Customer Contracts, Schedule and Process Billing, Define Billing Plan, Tax Parameters	Update tax information for contract lines associated with fixed-fee billing plans. You can update the tax parameters for any contract lines for which you have not created a bill plan line. Tax codes are applied and calculated at the bill line level so that each bill line can be taxed at a different rate.
Billing Plan - History	CA_BP_XREF	Customer Contracts, Schedule and Process Billing, Define Billing Plan, History	View the status for all billing activity related to this bill plan ID.
Assign Billing Plan	CA_BP_LINK	Customer Contracts, Schedule and Process Billing, Assign Billing Plan	Assign or unassign contract lines to billing plans. You can first define billing plans and assign the contract lines to these existing billing plans, or you can first assign the lines to a new billing plan and then define the details of the billing plan.

Defining Cost-Plus Billing Plans

Access the Billing Plan - Billing Plan General page.

See Defining High-Level Billing Plan Information.

Defining Fixed Fee Billing Fee Worksheets

Access the Billing Plan – Billing Fee Worksheet page for fixed fees.

When you define a billing plan for a cost-plus contract line associated with a fee type of Fixed, the system automatically creates a billing plan with a billing fee worksheet containing fields that are specific to fixed fee processing.

Billing Amounts - Amounts from Contract Amt Page

Fixed Fee Percent

Displays the fixed fee percentage defined on the Contract Amounts page for the contract line. The fixed fee percent is multiplied by the total funded costs to determine the total funded fee amount.

Billing Fee Calculation

Fixed Fee Already Created

Displays the total to date for all billable fixed fee rows already created for the contract line.

For this value, the system retrieves the fixed fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).

Proposed Fixed Fee

Displays the calculated total of all billable cost rows to date for the contract line for which fees have not been created, multiplied by the fixed fee percentage. You can override this value if needed.

Current Period Fixed Fee

Displays the billing fixed fee total for the current period after the fee limits process has run.

Defining Award Fee Billing Fee Worksheets

Access the Billing Plan – Billing Fee Worksheet for award fees.

When you define a billing plan for a cost-plus contract line associated with a fee type of Award, the system automatically creates a billing plan with a billing fee worksheet containing fields that are specific to award fee processing.

Billing Amounts - Amounts from Contract Amt Page

Base Fee Percent

Displays the base fee percentage defined on the Contract Amounts page for the contract line. The billing base fee percent is multiplied by the total funded costs to determine the total funded fee amount.

Billing Base Fee Calculation

Base Fee Already Created

Displays the total to date for all billable base fee rows already created for the contract line.

For this value, the system retrieves the award fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).

Proposed Base Fee

Displays the calculated total of all billable cost rows to date for the contract line for which fees have not been created, multiplied by the base fee percentage. You can override this value if needed.

Current Period Base Fee

Displays the billing base fee total for the current period after the fee limits process has run.

Billing Award Fee Calculation

Award Fee Already Created	Displays the total to date for all billable award fee rows already created for the contract line. For this value, the system retrieves the award fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).
Additional Award Fee Limit	Displays the additional award fee limit percentage entered on the Contract Amounts page for the contract line.
Award Fee Amount Proposed	Displays the calculated total of all billable cost rows to date for the contract line for which fees have not been created, multiplied by the award fee percentage. You can override this value if needed.
Current Period Award Fee	Displays the billing award fee total for the current period after the fee limits process has run.

Defining Incentive Fee Billing Fee Worksheets

Access the Billing Plan - Billing Fee Worksheet for incentive fees.

When you define a billing plan for a cost-plus contract line associated with a fee type of Incentive, the system automatically creates a billing plan with a billing fee worksheet containing fields that are specific to incentive fee processing.

Billing Amounts - Amounts from Contract Amt Page

Cost Share Overrun	Displays the cost share overrun percentage entered on the Contract Amounts page for the contract line. Then system uses the cost share overrun percentage to adjust the target fee percentage that can be billed.
Cost Share Underrun	Displays the cost share underrun percentage entered on the Contract Amounts page for the contract line. The system uses the cost share underrun percentage to adjust the target fee percentage that can be billed.
Target Fee Percent	Displays the target fee percentage entered on the Contract Amounts page for the contract line. The system uses the target fee percentage to calculate the target fee amount.
Target Fee Amount	Displays the calculated total of the funded cost limit multiplied by the target fee percentage.
Minimum Fee Percent	Displays the minimum fee percentage entered on the Contract Amounts page for the contract line. This percentage represents the minimum fee percentage that can be billed for the contract line.
Minimum Fee Amount	Displays the calculated total of the funded cost limit multiplied by the minimum fee percentage.
Maximum Fee Percent	Displays the maximum fee percentage entered on the Contract Amounts page for the contract line. This percentage represents the maximum fee percentage that can be billed for the contract line.
Maximum Fee Amount	Displays the calculated total of the funded cost limit multiplied by the maximum fee percentage.
Total Maximum Cont Line Value (total maximum contract line value)	Displays the calculated total of the funded cost limit plus the maximum fee amount.

Project Costing - Billing

Difference

Displays the calculated total of the funded cost limit minus all available billable costs to date for the contract line.

Billing Fee Calculation

Cost Share Portion	Displays the calculated total of the difference amount between the funded cost limit and all available billing cost rows for the contract line multiplied by the cost share percentage to be used. The cost share percentage used is either the underrun or overrun cost share percentage depending on whether the total inception to date billable costs are less than or greater than the funded cost limit amount respectively.
Cumulative Fee	Displays the calculated total of the cost share portion amount plus the target fee amount.
Proposed Incentive Fee	Displays the proposed incentive fee for the contract line. If the actual billable costs to date are less then or equal to the funded cost limit, the system uses the lessor of the cumulative fee amount or the maximum fee amount for the proposed incentive fee. If the actual billable costs to date are greater then the funded costs limit, then the system uses the greater of the cumulative fee amount or the minimum fee amount for the proposed incentive fee. This amount can be overwritten if needed, but must be within the minimum and maximum fee ranges defined for the contract line.
Incentive Fee	Displays the billing incentive fee total for the current period after the fee limits process has run.

Defining Other Fee Billing Fee Worksheets

Access the Billing Plan – Billing Fee Worksheet for other fees.

When you define a billing plan for a cost-plus contract line associated with a fee type of Other, the system automatically creates a billing plan with a billing fee worksheet containing fields that are specific to other fee processing.

Billing Fee Calculation

Other Fee Already Created

Displays the total to date for all billable other fee rows already created for the contract line.

For this value, the system retrieves the other fee billing rows that are assigned the analysis type specified in the Billing Target Fee Attributes group box on the Fee Definition page for this fee type. The fee definition is defined on the Contracts Business Unit component (BUS_UNIT_TBL_CA).

Proposed Other Fee

Displays the other fee amount entered on the Contract Amounts page for the contract line. This amount can be overwritten if needed.

Current Period Other Fee

Displays the billing other fee total for the current period after the fee limits process has run.

Creating Award Fee Schedules

Access the Billing Plan - Events page for award fee schedule.

The award schedule page is used to define events for award fees. The events fields appear when you navigate to the Billing Plan page from the Billing Fee Worksheet for Award fees. You can define milestone or date event types to control the timing of when bills are generated for award fees. You can enter multiple event rows, but only one event can be set to a Ready status at a time.

Award Fee Detail

Additional Award Fee Limit	Displays the additional award fee limit amount defined on the Contract Amounts page for the contract line assigned to this billing plan.
Award Fee Already Created	Displays the total for the award fee billing rows created to date for the contract line assigned to this billing plan. This data is retrieved for the Project Costing Project Transaction table.
Available Award Fee	Displays the calculated total of the additional award fee limit less the award fee amount already created.
Adjustment Fee	Click to access the Fee Adjustment page where you can enter a fee adjustment event. Fee adjustments cannot be set to Ready status if a fee event on the Billing Plan - Events page is set to Ready status.

Creating Incentive Fee Schedules

Access the Billing Plan – Events page for the incentive fee schedule.

The Incentive schedule page is used to define an event for incentive fees. The events fields appear when you navigate to the Billing Plan page from the Billing Fee Worksheet for incentive fees. You can define a milestone or date event type to control the timing of when a bill is generated for incentive fees. You can only enter one event row in this schedule.

Incentive Fee Detail

Cumulative/Proposed Fee	Displays the cumulative or proposed fee amount from the incentive fee worksheet.
Minimum Fee Amount	Displays the calculated minimum fee amount from the incentive fee worksheet.
Maximum Fee Amount	Displays the calculated maximum fee amount from the incentive fee worksheet.
Fee Used	Displays the minimum, maximum or cumulative fee amount used by the system for incentive fee billing.
Adjustment Fee	Click to access the Fee Adjustment page where you can enter a fee adjustment event. Fee adjustments cannot be set to Ready status if a fee event on the Billing Plan page is set to Ready status.

Adjusting Award Fees

Access the Billing Plan – Fee Adjustments page for award fees.

The Fee Adjustments page enables you to adjust fee amounts that have been processed. You can enter either a negative or positive amount, up to the fee amount that has been billed to date. Billing fees that have not yet been processed are adjusted using the billing fee worksheet, Proposed Amount field. Adjustments to award fees are not controlled by amendment processing.

Award Fee Details

Additional Award Fee Limit	Displays the additional award fee limit amount defined on the Contract Amounts page for the contract line assigned to this billing plan.
Award Fee Already Created	Displays the total for the additional award fee billing rows created to date for the contract line assigned to this billing plan. This data is retrieved for the Project Costing Project Transaction table.
Available Award Fee	Displays the calculated total of the additional award fee limit less the award fee amount already created.

Adjustment Detail

Adjustment

Displays the sequence number automatically assigned to the adjustment row.

Event Status

Select the status of the event. The event status controls the timing of when the event can be processed. Select from the following statuses:

Pending: Appears by default when you open the Fee Adjustment page.

You can enter a fee adjustment row in pending status and edit the fee adjustment amount.
Ready: Set the fee adjustment row to Ready status when you are ready to process the adjustment.

When you run the Contracts/Billing Interface (CA_BI_INTFC) process to generate the adjustment row, the system checks the adjustment amount against the award fee limit. Only one award fee adjustment row can be set to Ready status at any one time. You cannot set an award fee adjustment row to Ready status if an award revenue fee event row is in Ready status.

Award adjustment rows in Ready status cannot be edited. You must first reset the status to pending to make any changes to the row.
Completed: Set by the system when you run the Contracts/Billing Interface process.

The system processes the billing fee adjustment, creates an adjustment entry on the Award schedule page with a status of Adjustment, and sets the adjustment row to a status of Completed. Award adjustment rows in Completed status can no longer be edited.

Amount

Enter a positive or negative fee adjustment amount. The amount that you enter cannot be greater or less than the fee amount that has been billed to date and cannot exceed the fee limit amount.

Adjusting Incentive Fees

Access the Billing Plan – Fee Adjustments page for incentive fees.

The Fee Adjustments page enables you to adjust fee amounts that have been processed. You can enter either a negative or positive amount, up to the fee amount that has been billed to date. Billing fees that have not yet been processed are adjusted using the billing fee worksheet, Proposed Amount field. Adjustments to incentive fees are not controlled by amendment processing.

Incentive Fee Detail

Cumulative/ Proposed Fee	Displays the cumulative or proposed fee amount from the incentive fee worksheet.
Minimum Fee Amount	Displays the calculated minimum fee amount from the incentive fee worksheet.
Maximum Fee Amount	Displays the calculated maximum fee amount from the incentive fee worksheet.
Fee Used	Displays the minimum, maximum or cumulative fee amount used by the system for incentive fee billing.

Adjustment Detail

Adjustment

Displays the sequence number automatically assigned the adjustment row.

Event Status

Select the status of the event. The event status controls the timing of when the event can be processed. Select from the following statuses:

Pending: Appears by default when you open the Fee Adjustment page.

You can enter a fee adjustment row in pending status and edit the fee adjustment amount.
Ready: Set the fee adjustment row to Ready status when you are ready to process the adjustment.

When you run the Contracts/Billing Interface (CA_BI_INTFC) process to generate the adjustment row, the system checks the adjustment amount against the incentive fee minimum and maximum fee ranges. Only one fee adjustment row can be set to Ready status at any one time. You cannot set an incentive fee adjustment row to Ready status if the incentive revenue fee event row is in Ready status.

Incentive fee adjustment rows in Ready status cannot be edited. You must first reset the status to pending to make any changes to the row.
Completed: Set by the system when you run the Contracts/Billing Interface process.

The system processes the billing fee adjustment, creates an adjustment entry on the Incentive schedule page with a status of Adjustment, and sets the adjustment row to a status of Completed. Incentive adjustment rows in Completed status can no longer be edited.

Amount

Enter a positive or negative fee adjustment amount. The amount that you enter cannot be greater or less than the fee amount that has been billed to date and cannot exceed the fee minimum and maximum amounts.

Updating Tax Information

Access the Billing Plan - Tax Parameters page.

See Updating Tax Information.

Viewing Billing History

Access the Billing Plan - History page.

See Viewing Billing History.

Assigning Cost-Plus Contract Lines to Billing Plans

You can assign cost-plus contract lines to as-incurred billing plans using the Assign Billing Plan page. If you add a cost-plus contract line to a contract with an incorrect fee type, and a billing plan has already been assigned to the contract line, you must first unassign the contract line from the billing plan using the Unassign button on this page and then delete the contract line, and re-add it with the correct fee type assigned to the contract line.

See Assigning Contract Lines to Billing Plans.

Processing Billing for Cost-Plus Contract Lines

This section provides an overview of processing billing for cost-plus contract lines and discusses how to:

Process billing for cost-plus contract lines.
Adjust billing for cost-plus contract lines.

Understanding Processing Billing for Cost-Plus Contract Lines

Processing billing for cost-plus contract lines includes generating invoices for the costs related to the contract lines themselves and generating invoices for any associated fees. Before you can generate invoices for your contract lines and fees, you must first complete the following tasks:

Define accounting rules containing the PeopleSoft Project Costing ChartField combinations and business units for your contract line transactions.
Assign a rate plan to your cost-plus contract lines.
Assign projects and activities to your active cost-plus contract lines.
Assign your cost-plus contract lines to as-incurred billing plans.

The billing plans contain the billing fee worksheets and enable you to process billing for both your contract lines and any associated fees.
Set your contract to an active processing status.
Set the as-incurred billing plan and any associated events to a status of Ready.

Before generating invoices for your billing fees, you must first calculate and generate the fees using the billing fee worksheets on the billing plan. Using the fee worksheets, you must evaluate the system calculated, proposed fee amount and either accept the amount or enter a different amount. When you click the Submit button on the fee worksheet, the system evaluates the proposed amount against the billing fee limits and fee criteria and determines if the proposed amount can be processed. Once processed, summarized fee rows are generated and posted to the Project Transaction tables in PeopleSoft Project Costing using the fee definition criteria setup for the contract's business unit.

To generate invoices for your fee amounts and your cost-plus contract lines, you must run the Contracts/Billing Interface (CA_BI_INTFC) process for rate-based contract lines. The Contracts/Billing Interface process is the first step in the billing process, and includes the following steps:

Selects eligible billing and fee rows from the Project Costing Project Transaction (PROJ_RESOURCE) table for processing and posts the billing data to the Billing Interface (BI_INTFC) tables.

The system selects billable transaction rows for processing that are associated with an analysis type assigned to the PSWKS analysis group and that are tied to contract lines that are linked to as-incurred billing plans in Ready status. For award and incentive fees, the system also selects billable fee rows that are associated with billing fee events with a ready status.
After the Contracts/Billing Interface process has been run, you then run the Billing Interface (BIIF001) process to generate real or temporary bills for your contract lines and fees.
Depending on how your bill processing is set up for your contracts, the Billing Interface process passes the temporary bills to the billing worksheet for review and approval.
After the billing rows are approved on the billing worksheet, the system passes the billing data to PeopleSoft Billing for invoice generation and bill finalization.
After the invoices are finalized for your contract lines and fees, you must run the Projects/Contracts Interface (BIPCC000) process to update PeopleSoft Project Costing and PeopleSoft Contracts with the billed data.

The Projects/Contracts Interface process updates the billing plan history page with the finalized bill rows and updates the billing plan event status (for award and incentive fee events) to Completed.
The last step in performing bill processing for your contract lines and fees is to run the Project Costing/Billing Interface (PC_BI_TO_PC) process to update the PeopleSoft Project Costing tables with the finalized bill data and update the billing distribution status for the billed rows to D (distributed).

Streamline Processing

PeopleSoft Contracts delivers streamline processing to enable you to generate invoices for your cost-plus contract lines and associated fees using a single process. By performing a few simple setup tasks, you can set up the Contracts/Billing Interface (CA_BI_INTFC) process for rate-based billing to perform all of the steps for generating invoices for cost transactions and associated fees and update PeopleSoft Contracts and PeopleSoft Project Costing with the results.

To set up streamline processing for invoice generation for cost-plus contract lines and fees, perform the following steps:

Select the Process Automatically option on the billing fee worksheets.

By selecting the Process Automatically option on the billing fee worksheets, the Contracts/Billing Interface process initiates the fee processor to evaluate the fee amount proposed by the system to determine if it meets the billing fee limit criteria, and submits the fee for processing. The fee is then processed through to PeopleSoft Billing, and finalized fee data updates are sent back to PeopleSoft Contracts and PeopleSoft Project Costing.
Select the Pre Approved and Direct Invoice check boxes on the Billing Plan-General page for the contract lines.

Selecting the Pre Approved check box enables the system to bypass the billing worksheet approval process. Selecting the Direct Invoice check box enables the system to pass the billing data all the way through to billing finalization and updating PeopleSoft Contracts and Projects with the billed data for your contract lines and associated fees.
(Optional) Select the Process Milestones option on the Process As Incurred Billing page.

If you are using milestone events for your award or incentive fee schedules, then the milestone status must be complete before the billing event can be processed. By selecting this option on the Process As Incurred Billing page, the Contracts/Billing Interface process initiates the Milestone Processing Application Engine process (CA_MS_PRCS) to update any eligible milestone statuses to Complete.

After you have performed these setup steps, when you run the Contracts/Billing Interface process, the system generates billing fee rows using the proposed fee amounts from the billing fee worksheets, verifies that the proposed fees are within the limits specified and passes the fee data on to PeopleSoft Billing. The system also generates billing rows for all eligible contract line transactions where the billing plans and any corresponding billing fee events are set to Ready status. These billing and fee rows are passed to PeopleSoft Billing for invoice generation and finalization and then the billed data is passed back to PeopleSoft Project Costing and PeopleSoft Contracts.

Running the Contracts Billing Interface Process (CA_BI_INTFC)

Page Used to Process Billing for Cost-Plus Contract Lines

Page Name	Definition Name	Navigation	Usage
Process As Incurred Billing	RUN_CA_BI	Customer Contracts, Schedule and Process Billing, Process As Incurred Billing	Run this process to load as-incurred billing information from PeopleSoft Contracts and PeopleSoft Project Costing into Billing to create bills for your cost-plus contract lines and fees.

Processing Billing for Cost-Plus Contract Lines

Access the Process As Incurred Billing page.

See Running the Contracts Billing Interface Process for As-Incurred Billing.

Adjusting Billing for Cost-Plus Contract Lines

Throughout the life of the contract, changes may occur that impact billing costs, limit amounts, or fees. To manage billing adjustments, PeopleSoft Contracts uses amendment processing to enable you to keep a historical record of any changes that you make. To manage billing fee adjustments, you must use the billing fee worksheets and the Fee Adjustment page (if adjusting award or incentive fees).

The following table lists some examples of billing adjustments that you might make and the tasks required to complete the changes:

Billing Adjustment	Tasks	Controlled By Amendment Processing
Increase or decrease billing fee percentage for fixed or award fee types.	Enter the fee percentage change on the appropriate Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Increase or decrease the billing cost share percentage for incentive fee types.	Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Increase or decrease the funded target fee for incentive fee types.	Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Increase or decrease the funded maximum or minimum fee for incentive fee types.	Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero.	Yes
Reduce the funded fee amounts due to cost adjustments.	Use the billing fee worksheet for the contract line and enter a negative billing fee amount. The fee adjustment cannot be greater than the fee amount already invoiced to date.	No Note. To maintain a historical record of this transaction, use the internal notes page for the contract.
Increase funded fee amounts due to cost adjustments.	Use the billing fee worksheet for the contract line and enter the billing fee adjustment amount.	No Note. To maintain a historical record of this transaction, use the internal notes page for the contract.
Modify the funded amount limit or funded fee limit amount.	Enter the new funded amount limit or funded fee limit amount on the appropriate Contract Amounts page.	Yes

See Defining Award Fee Billing Fee Worksheets.

Reviewing Revenue and Billing Fees

This section provides an overview of reviewing billing and revenue fees for cost-plus contract lines and discusses how to:

Review revenue fees.
Review billing fees.
Review cost, revenue, and billing transactions in PeopleSoft Project Costing.

Understanding Reviewing Billing and Revenue Fees

PeopleSoft Contracts enables you to capture billing and revenue information for government contracts and allocate that information across contract lines. After your contracts are active, you may need to review the billing and revenue recognition statuses of your contracts and any associated fees. PeopleSoft Contracts delivers several online inquiry pages to enable you to view billing and revenue plans associated with the contract line, statuses of those plans, financial details of the contract line amounts, fees billed or recognized to date, and so on. Using these online inquiry pages you can view the overall status of the contract at a particular point in time from a high level, or you can drill down into specific contracts, billing plans, or revenue recognition plans to view more detailed information.

Pages Used to Review Billing and Revenue Fees

Page Name	Definition Name	Navigation	Usage
Review Revenue - As Incurred	CA_AP_DTL_ASIN	Customer Contracts, Review Revenue, As Incurred, Review Revenue-As Incurred Click the Method link for a specific revenue plan on the Review Revenue - Plans page.	Inquire about the details for revenue plans for rate-based contract lines and rate-based contract lines associated with fee types. From this page, you can review the details of the revenue and fees that have been booked, and redistribute that revenue.
Review Billing - As Incurred	CA_BI_MGMT_AI_PNL	Customer Contracts, Review Billing, As Incurred, Review Billing-As Incurred	Inquire on the status of as-incurred billing plans. From this page, you can view the amounts and fees that have been billed to date and the amounts that are pending. You can place billing plans on hold and you can navigate to more detailed information.
Cost Review	PC_PM_SUMM_COST	Project Costing, Interactive Reports, Manager Transaction Review Select the Cost Review tab.	Review revenue, billing, and cost transaction data for your cost-plus contract lines that is stored in PeopleSoft Project Costing. You can use the Cost Review tab to manually adjust cost transactions in PeopleSoft Project Costing.

Reviewing Revenue Fees

See Reviewing Revenue.

Reviewing Billing Fees

See Reviewing Billing Activity.

Reviewing Cost, Revenue, and Billing Transactions in PeopleSoft Project Costing.

Throughout the life of the contract situations may occur where transactions need adjusting. You should always adjust transactions in the original feeder systems when possible to ensure that all of your systems remain in sync with one another. All transactions for cost-plus contract lines are stored in the Project Costing Project Transaction tables. To view the cost, billing, and revenue transactions for your cost-plus contract lines, you can use the Managing Transaction Review pages.

Note. While it is possible to adjust transactions from this page, it is not recommended.

See Reviewing Cost Transactions.

Creating Amendments

As government contracts containing cost-plus contract lines generally extend over a period of years, throughout that time changes may occur that impact fee percentages, funded amount limits, revenue limits, and so on. After a contract has been activated, many of the contact's components can only be modified using amendment processing. Most of the fields on the Contracts Amounts page are controlled by amendment processing; however, the fields on the fee worksheets are not controlled by amendment processing.

When you make amendment changes to the Contract Amounts page, the fee worksheets should all be updated so that the changes are incorporated in the fee calculations the next time that the fee worksheets are used.

See Amending Cost-Plus Contract Lines.

Revenue Plan	Select a predefined revenue plan template to automatically create a revenue plan for the contract line. Cost-plus contract lines require that you use revenue plan templates associated with an as-incurred revenue plan method. If you select a revenue plan template associated with a revenue plan method other then as-incurred, the system will not allow you to add the product onto the contract.
Billing Plan	Select a predefined billing plan template to automatically create a billing plan for the contract line. Cost-plus contract lines require that you use billing plan templates associated with an as-incurred billing plan method. If you select a billing plan template associated with a billing plan method other then as-incurred, the system will not allow you to add the product onto the contract.
Billing Plan Detail	Select a billing plan detail template to automatically populate the Billing Plan General page for the contract line.
Create Plans from Template	Select to enable the system to automatically create billing and revenue plans from billing and revenue plan templates assigned to the product. Billing and revenue plan templates are automatically created when the products are added to the contract and the contract is saved.
Combine Like Templates	Select to automatically combine multiple products onto the same billing or revenue plan when the product is assigned to the same billing or revenue plan template. This option does not apply to cost-plus contract lines as they must be assigned to their own individual billing and revenue plans. The attributes of the billing and revenue plans for cost-plus contract lines are created specifically to meet the needs of the fee type assigned to the rate-based product. This option can be used to combine billing and revenue plan for amount-based products and rate-based products assigned a fee type of None.
Add Contract Lines	Click this button to add the selected products to your contract.